(62d) Economic Analysis of Integrated Solar Power, Hydrogen Production, and Electricity Markets
Here we develop a holistic model-based system analysis to determine the cost-effectiveness of hybrid solar PV and hydrogen electrolysis systems in different electricity markets in California. The system analysis, which is based on an optimization framework, examines different system configurations, locations, incentives, electricity markets, i.e., wholesale and retail markets, financing conditions, and financial incentives. Moreover, sensitivities to energy policies and financial conditions were evaluated to identify cost reduction opportunities. Our results, which are analyzed in terms of hydrogen breakeven cost, indicate that under current market conditions the threshold for the economic viability of electrolytic hydrogen in California ranges from US$ 5.69 kg-1 to US$ 6.11 kg-1, depending on the location. These hydrogen prices are cost-competitive with the current supply cost in California.
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