Decentralized Coordination Strategy for Integrated Electricity-Hydrogen Market

Abstract

As a clean, carbon-free, flexible and efficient secondary energy, the application prospect of hydrogen is promising. In the existing hydrogen market, the reforming of fossil fuels is the most mainstream way to produce hydrogen. Under the background that water electrolysis into hydrogen will become the mainstream method of hydrogen production in the future, the existing operation mechanism will no longer be applicable to hydrogen market. With the deepening of the coupling between both the electricity and hydrogen market, it is necessary to study the decomposition and coordination mechanism of the electricity-hydrogen market. In this paper, a joint clearing model for the electricity-hydrogen market is established. The above two markets are connected by power-to-hydrogen (P2H) and fuel cell facilities. A decentralized algorithm based on optimality condition decomposition (OCD) is developed to decompose and coordinate the electricity market and the hydrogen market. Case study based on modified IEEE-30 bus system with Belgian-20-node gas system demonstrate the effectiveness and efficiency of the proposed mechanism and method.