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Techno-economic analysis of balancing California’s power system on a seasonal basis: Hydrogen vs. lithium-ion batteries

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  • Hernandez, Drake D.
  • Gençer, Emre

Abstract

Non-emitting variable renewable energy (VRE) resources are needed on the power grid if the United States is to “deeply decarbonize” the power sector. The intermittent nature of these resources makes them difficult to integrate into the power system. Existing energy storage technologies, such as lithium-ion (LI) batteries, could be used to aid the integration of these resources, but these technologies are sized to produce power for hours at a time before needing to be charged again. While these energy storage technologies could address daily imbalances between supply and demand for electric power, they cannot address the seasonal nature of power production of VREs. This paper details a methodology to estimate the levelized cost of energy (LCOE) of meeting this seasonal imbalance with either a hydrogen-fired gas turbine (HFGT) or lithium-ion battery system (LI) as a measure of economic efficiency of the technologies. Applying our model, we find the average LCOE associated with meeting this seasonal imbalance is $2400/MWh using a HFGT fueled with green hydrogen and $3000/MWh using a LI. If we allow the model to operate the HFGT with blue hydrogen the average LCOE decreases to $1560/MWh. However, we find the power prices required to justify investment in an HFGT to replace a natural gas-fired gas turbine are considerably higher than those seen in the market today.

Suggested Citation

  • Hernandez, Drake D. & Gençer, Emre, 2021. "Techno-economic analysis of balancing California’s power system on a seasonal basis: Hydrogen vs. lithium-ion batteries," Applied Energy, Elsevier, vol. 300(C).
    • Handle: RePEc:eee:appene:v:300:y:2021:i:c:s0306261921007261
    DOI: 10.1016/j.apenergy.2021.117314
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    3. Sánchez, Antonio & Blanco, Elena C. & Martín, Mariano, 2024. "Comparative assessment of methanol and ammonia: Green fuels vs. hydrogen carriers in fuel cell power generation," Applied Energy, Elsevier, vol. 374(C).
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    5. Shi, Mengshu & Huang, Yuansheng, 2022. "Research on investment planning of power-hydrogen system considering the multi-stakeholder benefit," Renewable Energy, Elsevier, vol. 199(C), pages 1408-1423.
    6. Dillman, K.J. & Heinonen, J., 2022. "A ‘just’ hydrogen economy: A normative energy justice assessment of the hydrogen economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    7. Shen, Xiaojun & Li, Xingyi & Yuan, Jiahai & Jin, Yu, 2022. "A hydrogen-based zero-carbon microgrid demonstration in renewable-rich remote areas: System design and economic feasibility," Applied Energy, Elsevier, vol. 326(C).
    8. Calise, Francesco & Cappiello, Francesco Liberato & Cimmino, Luca & Dentice d’Accadia, Massimo & Vicidomini, Maria, 2023. "Renewable smart energy network: A thermoeconomic comparison between conventional lithium-ion batteries and reversible solid oxide fuel cells," Renewable Energy, Elsevier, vol. 214(C), pages 74-95.
    9. Calise, F. & Cappiello, F.L. & Cimmino, L. & Vicidomini, M., 2022. "Dynamic simulation modelling of reversible solid oxide fuel cells for energy storage purpose," Energy, Elsevier, vol. 260(C).
    10. Ahang, Mohammadreza & Granado, Pedro Crespo del & Tomasgard, Asgeir, 2025. "Investments in green hydrogen as a flexibility source for the European power system by 2050: Does it pay off?," Applied Energy, Elsevier, vol. 378(PA).

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