IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v304y2024ics0360544224017031.html
   My bibliography  Save this article

Green hydrogen exports in New Zealand and Chile can improve electricity supply security if configured as local energy insurance

Author

Listed:
  • Alvear, Carlos
  • Haas, Jannik
  • Palma-Behnke, Rodrigo
  • Peer, Rebecca
  • Medina, Juan Pablo
  • Kern, Jordan D.

Abstract

Extreme weather events, for example, prolonged droughts, are increasingly stressing electricity systems and threatening the achievement of energy transition goals. At the same time, countries such as Chile and New Zealand are developing strategies to export renewable energy through green hydrogen. This paper economically evaluates the use of future green hydrogen exports as strategic storage under the logic of energy insurance, based on the assumption that Chile and New Zealand will adopt a hydrogen economy. Our first contribution is to compare the marginal costs of re-electrified green hydrogen, for different scenarios, to the value of lost load in New Zealand and Chile. We then determine the marginal cost of energy produced from green hydrogen based on projected production, transportation, and re-electrification costs for the year 2030. Finally, we estimate the eventual penalties that exporters would incur in the case of breaking their contracts and the overall resulting system costs of using hydrogen for system security. We found that re-electrifying hydrogen can be competitive with conventional technologies at 3 USD/kg. At 1.5 USD/kg, hydrogen is more competitive than fossil fuel-based technologies, for both New Zealand and Chile. Thus, in 2030, it could make economic sense for New Zealand and Chile to use hydrogen as a strategic reserve. The system cost of the proposed insurance scheme in 2030 ranges from 0.53 to 1.76 USD/MWh, which is small compared to total electricity costs. These values can be used for power system expansion and operation planning.

Suggested Citation

  • Alvear, Carlos & Haas, Jannik & Palma-Behnke, Rodrigo & Peer, Rebecca & Medina, Juan Pablo & Kern, Jordan D., 2024. "Green hydrogen exports in New Zealand and Chile can improve electricity supply security if configured as local energy insurance," Energy, Elsevier, vol. 304(C).
    • Handle: RePEc:eee:energy:v:304:y:2024:i:c:s0360544224017031
    DOI: 10.1016/j.energy.2024.131930
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224017031
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.131930?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Viviana Cigolotti & Matteo Genovese & Petronilla Fragiacomo, 2021. "Comprehensive Review on Fuel Cell Technology for Stationary Applications as Sustainable and Efficient Poly-Generation Energy Systems," Energies, MDPI, vol. 14(16), pages 1-28, August.
    2. Pablo González-Inostroza & Claudia Rahmann & Ricardo Álvarez & Jannik Haas & Wolfgang Nowak & Christian Rehtanz, 2021. "The Role of Fast Frequency Response of Energy Storage Systems and Renewables for Ensuring Frequency Stability in Future Low-Inertia Power Systems," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. César Rodríguez-Aburto & José Poma-García & Jorge Montaño-Pisfil & Pablo Morcillo-Valdivia & Fernando Oyanguren-Ramirez & Cesar Santos-Mejia & Ruben Rodriguez-Flores & Paul Virú-Vasquez & Alex Pilco-N, 2024. "Bibliometric Analysis of Global Publications on Management, Trends, Energy, and the Innovation Impact of Green Hydrogen Production," Sustainability, MDPI, vol. 16(24), pages 1-24, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roy, Dibyendu & Samanta, Samiran & Roy, Sumit & Smallbone, Andrew & Roskilly, Anthony Paul, 2023. "Multi-objective optimisation of a power generation system integrating solid oxide fuel cell and recuperated supercritical carbon dioxide cycle," Energy, Elsevier, vol. 281(C).
    2. Iliya Krastev Iliev & Antonina Andreevna Filimonova & Andrey Alexandrovich Chichirov & Natalia Dmitrievna Chichirova & Alexander Vadimovich Pechenkin & Artem Sergeevich Vinogradov, 2023. "Theoretical and Experimental Studies of Combined Heat and Power Systems with SOFCs," Energies, MDPI, vol. 16(4), pages 1-17, February.
    3. Hao, Xinyang & Salhi, Issam & Laghrouche, Salah & Ait Amirat, Youcef & Djerdir, Abdesslem, 2023. "Multiple inputs multi-phase interleaved boost converter for fuel cell systems applications," Renewable Energy, Elsevier, vol. 204(C), pages 521-531.
    4. Kim, Kyungah & Moon, Sungho & Kim, Junghun, 2023. "How far is it from your home? Strategic policy and management to overcome barriers of introducing fuel-cell power generation facilities," Energy Policy, Elsevier, vol. 182(C).
    5. Marialaura Di Somma & Martina Caliano & Viviana Cigolotti & Giorgio Graditi, 2021. "Investigating Hydrogen-Based Non-Conventional Storage for PV Power in Eco-Energetic Optimization of a Multi-Energy System," Energies, MDPI, vol. 14(23), pages 1-17, December.
    6. Jiaping Xie & Chao Wang & Wei Zhu & Hao Yuan, 2021. "A Multi-Stage Fault Diagnosis Method for Proton Exchange Membrane Fuel Cell Based on Support Vector Machine with Binary Tree," Energies, MDPI, vol. 14(20), pages 1-22, October.
    7. Costas Athanasiou & Christos Drosakis & Gaylord Kabongo Booto & Costas Elmasides, 2022. "Economic Feasibility of Power/Heat Cogeneration by Biogas–Solid Oxide Fuel Cell (SOFC) Integrated Systems," Energies, MDPI, vol. 16(1), pages 1-30, December.
    8. Genovese, M. & Piraino, F. & Fragiacomo, P., 2024. "3E analysis of a virtual hydrogen valley supported by railway-based H2 delivery for multi-transportation service," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    9. Viole, Isabelle & Valenzuela-Venegas, Guillermo & Zeyringer, Marianne & Sartori, Sabrina, 2023. "A renewable power system for an off-grid sustainable telescope fueled by solar power, batteries and green hydrogen," Energy, Elsevier, vol. 282(C).
    10. Sergey V. Mitrofanov & Natalya G. Kiryanova & Anna M. Gorlova, 2021. "Stationary Hybrid Renewable Energy Systems for Railway Electrification: A Review," Energies, MDPI, vol. 14(18), pages 1-21, September.
    11. Matteo Genovese & Viviana Cigolotti & Elio Jannelli & Petronilla Fragiacomo, 2023. "Hydrogen Refueling Process: Theory, Modeling, and In-Force Applications," Energies, MDPI, vol. 16(6), pages 1-31, March.
    12. Farhad Zishan & Oscar Danilo Montoya & Diego Armando Giral-Ramírez, 2023. "New Design and Study of the Transient State and Maximum Power Point Tracking of Solid Oxide Fuel Cells Using Fuzzy Control," Energies, MDPI, vol. 16(6), pages 1-19, March.
    13. Alice Di Bella & Massimo Tavoni, 2022. "Demand-side policies for power generation in response to the energy crisis: a model analysis for Italy," Papers 2212.06744, arXiv.org.
    14. Wolf, P. & Klingler, M. & Schmidt, M. & Kurze, M., 2023. "Ammonia-fed fuel cells for a locally CO2-free energy supply in the telecommunications industry - A comparative techno-economic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    15. Viole, Isabelle & Valenzuela-Venegas, Guillermo & Sartori, Sabrina & Zeyringer, Marianne, 2024. "Integrated life cycle assessment in off-grid energy system design—Uncovering low hanging fruit for climate mitigation," Applied Energy, Elsevier, vol. 367(C).
    16. Luigi Fortuna & Arturo Buscarino, 2022. "Sustainable Energy Systems," Energies, MDPI, vol. 15(23), pages 1-7, December.
    17. Guido Busca, 2024. "Critical Aspects of Energetic Transition Technologies and the Roles of Materials Chemistry and Engineering," Energies, MDPI, vol. 17(14), pages 1-32, July.
    18. Hossein Pourrahmani & Hamed Shakeri & Jan Van herle, 2022. "Thermoelectric Generator as the Waste Heat Recovery Unit of Proton Exchange Membrane Fuel Cell: A Numerical Study," Energies, MDPI, vol. 15(9), pages 1-21, April.
    19. Irene Martínez Reverte & Tomás Gómez-Navarro & Carlos Sánchez-Díaz & Carla Montagud Montalvá, 2022. "Evaluation of Alternatives for Energy Supply from Fuel Cells in Compact Cities in the Mediterranean Climate; Case Study: City of Valencia," Energies, MDPI, vol. 15(12), pages 1-30, June.
    20. Förster, Robert & Kaiser, Matthias & Wenninger, Simon, 2023. "Future vehicle energy supply - sustainable design and operation of hybrid hydrogen and electric microgrids," Applied Energy, Elsevier, vol. 334(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:304:y:2024:i:c:s0360544224017031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.