Conditions for profitable operation of P2X energy hubs to meet local demand with energy market access

Abstract

This paper analyzes the operation of an energy hub on a community level with an integrated P2X facility and with access to energy markets. In our case, P2X allows converting power to hydrogen, heat, methane, or back to power. We consider the energy hub as a large prosumer who can be both a producer and consumer in the markets with the novelty that P2X technology is available. We investigate how such a P2X energy hub trades optimally in the electricity market and satisfies local energy demand under the assumption of a long-term strong climate scenario in year 2050. For numerical analysis, a case study of a mountain village in Switzerland is used. One of the main contributions of this paper is to quantify key conditions for profitable operations of such a P2X energy hub. In particular, the analysis includes impacts of influencing factors on profits and operational patterns in terms of different degrees of self-sufficiency and different availability of local renewable resources. Moreover, the access to real-time wholesale market electricity price signals and a future retail hydrogen market is assessed. The key factors for the successful operation of a P2X energy hub are identified to be sufficient local renewable resources and access to a retail market of hydrogen. The results also show that the P2X operation leads to an increased deployment of local renewables, especially in the case of low initial deployment; on the other hand, seasonal storage plays a subordinated role. Additionally, P2X lowers for the community the wholesale electricity market trading volumes.