In the quest to decarbonise the energy sector and bolster supply flexibility, researchers have turned to an innovative approach that combines natural gas, electricity networks, and hydrogen storage. A groundbreaking study led by Akhil Joseph from Newcastle University’s School of Engineering delves into the strategic investments required to make this integrated energy system a commercial reality. The research, published in the International Journal of Electrical Power & Energy Systems, sheds light on the potential of hydrogen-based vector coupling storage (VCS) in a liberalised energy market.
At the heart of this study is a game-theoretic model that simulates the behaviour of market participants in an oligopolistic setting. This model is not just a theoretical exercise; it’s a practical tool designed to evaluate the long-term investment value of hydrogen production and storage components. “Our model helps quantify the strategic decisions that investors need to make in a competitive market,” Joseph explains. “It’s about understanding how to make hydrogen-based storage profitable and attractive to investors.”
The research focuses on the North of Tyne region in the UK, using a scaled-down version of the Future Energy Scenario dataset. This dataset reflects the region’s trajectory towards a net-zero emission target by 2050, providing a real-world context for the model’s simulations. The findings are clear: market liberalisation is crucial for attracting investments in renewable energy and hydrogen systems. But there’s more to it than just policy; the conversion efficiencies of electrolysers and fuel cells are key profitability determinants. “Achieving at least 50% round trip efficiency is essential for making vector coupling storage profitable,” Joseph asserts.
One of the most compelling aspects of this research is its comparison of large-scale VCS investments with traditional Li-ion battery storage. The results highlight the advantages of VCS, particularly in terms of long-term energy storage and grid stability. This could be a game-changer for the energy sector, offering a viable alternative to battery storage and paving the way for more extensive adoption of renewable energy sources.
The implications of this research are far-reaching. For energy companies, it provides a roadmap for strategic investments in hydrogen-based storage. For policymakers, it underscores the importance of market liberalisation in driving innovation and investment in clean energy technologies. And for consumers, it promises a more stable and sustainable energy supply.
As the energy sector continues to evolve, the insights from this study will be invaluable. They offer a glimpse into a future where hydrogen plays a pivotal role in our energy mix, where renewable energy is not just an aspiration but a commercial reality. The research published in the International Journal of Electrical Power & Energy Systems, also known as the International Journal of Electrical Power and Energy Systems in English, is a significant step towards that future. It’s a call to action for investors, policymakers, and energy companies to embrace the potential of hydrogen-based storage and drive the transition to a cleaner, more flexible energy system.
