A bidding-clearing mechanism for electricity-hydrogen conversion system participation in coEA market

Hydrogen energy offers advantages such as zero carbon emissions, flexible energy storage potential, and multi-scenario applicability. However, the hydrogen energy deployment currently faces challenges including difficulties in cost recovery and limited revenue stream. To address these challenges, this study proposes the electricity‑hydrogen conversion system to participate in multiple markets to improve its economic viability. A bidding-clearing mechanism for electricity‑hydrogen conversion system participation in co-optimized energy and ancillary service (coEA) market is proposed with the utilization of Security-Constrained Unit Commitment (SCUC) and Security-Constrained Economic Dispatch (SCED) models. Meanwhile, the constraint Lagrange multipliers are employed to obtain the Locational Marginal Prices (LMPs) of electric energy, as well as the frequency regulation capacity price, frequency regulation mileage price, upward spinning reserve price, and downward spinning reserve price of auxiliary service. Case analysis by employing the modified IEEE 39-bus system demonstrates the following findings: (1) In the coEA market, thermal and renewable generation units primarily derive revenues from energy transaction, while electricity‑hydrogen conversion system predominantly obtains income through the provision of ancillary service, which achieves integrated utilization of each participant's technical advantage and value realization; (2) Compared to solely participating in electric energy market, the electricity‑hydrogen conversion system achieves a 34.7 % increase in total revenue within coEA market; and (3) Higher renewable energy configuration level will expand the price arbitrage opportunity for electricity‑hydrogen conversion system which will amplify its value in providing frequency regulation and spinning reserve service, thereby enhancing its competitiveness. The framework of electricity‑hydrogen conversion system participation in coEA market proposed in this study can expand the revenue of hydrogen entity and activate the flexibility value of hydrogen energy, which can provide valuable insights for developing zero‑carbon energy system and promoting sustainable smart city development.