A Financial Feasibility Analysis of Hydrogen in Microgrids

Abstract

The non-conventional generation sources like solar and fuel cell connected to microgrids generate power in DC. There is also a significant load which can be supplied with DC power. This has stimulated research in DC microgrids. The futuristic technology trend is the role of Hydrogen in microgrids as storage, in fuel cell and for mobility applications. However, a microgrid comprising of hydrogen necessitates a robust financial analysis. This paper deals with the financial modelling of the hydrogen in a microgrid. The optimization-based planning of a DC microgrid system which uses solar, hydrogen is proposed. Various economic factors like Net Present Cost, Operational Cost, Initial Capital and the Cost of Energy Unit are calculated for various topologies. The financial analytical methodology discussed can also be broadly used to design cost-effective microgrid architecture.