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Open Access

On the Consistency of Renewable-to-Hydrogen Pricing

Litao Zheng, Jianxiao Wang ( ), Yang Yu, Gengyin Li, Ming Zhou, Qing Xia, Guizhi Xu
State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, North China Electric Power University, Beijing 102206, China
Institute for Interdisciplinary Information Sciences, Tsinghua University, Beijing 100084, China
State Key Lab of Power Systems, Department of Electrical Engineering, Tsinghua University, Beijing 100084, China
Global Energy Interconnection Research Institute co., Ltd., State Grid Corporation of China, Beijing 102211, China
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Abstract

With the proposal of carbon neutrality goals and hydrogen energy development strategies in various countries, the development and construction of hydrogen supply chains have become important priorities. However, existing research has paid little attention to the hydrogen market and pricing. Therefore, a hydrogen pricing method based on marginal pricing theory is proposed in this paper, which adapts to hydrogen systems with renewable-to-hydrogen as a major source, in the future. A hydrogen energy market is established to define the industrial chain of hydrogen and the hydrogen trading process. The hydrogen market-clearing model is formulated considering a dynamic line pack. Due to its nonconvexity, the model is equivalently converted into mixed-integer second-order cone programming, and the optimality gap is minimized by introducing a penalty term. Based on the clearing solution, the concept and calculation method of the locational marginal hydrogen price (LMHP) are proposed with respect to the locational marginal price (LMP) in electricity markets. Case studies based on a modified Belgium 20-node gas network and Pennsylvania, New Jersey, and Maryland (PJM) market operation data demonstrate the consistency between LMHP and LMP.

Keywords

Hydrogen marketlocational marginal pricerenewable-to-hydrogensecond-order cone programmingWeymouth equation

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CSEE Journal of Power and Energy Systems
Volume 8 Issue 2,
March 2022
Pages 392-402
DOI: 10.17775/CSEEJPES.2021.05630
Cite this article:
Zheng L, Wang J, Yu Y, et al. On the Consistency of Renewable-to-Hydrogen Pricing. CSEE Journal of Power and Energy Systems, 2022, 8(2): 392-402. https://doi.org/10.17775/CSEEJPES.2021.05630

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Received: 31 July 2021
Revised: 07 December 2021
Accepted: 24 January 2022
Published: 14 February 2022
© 2021 CSEE
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