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Optimal operating rules of hybrid power systems considering the integrated electricity and hydrogen markets

Author

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  • Gong, Yu
  • Liu, Tingxi
  • Liu, Pan
  • Li, Wanyu
  • Li, Chao
  • Hao, Lina

Abstract

Electricity markets have traditionally shaped the operating strategies for hybrid power systems integrating hydropower, wind, and photovoltaic sources. Previous research has established rule-based operating models of hybrid power systems under electricity markets. However, the recent emergence of hydrogen as a complementary energy carrier, which is projected to account for up to 12 % of global final energy consumption by 2050, introduces additional market complexity. Operating rules that explicitly consider the interactions between electricity and hydrogen markets remain underexplored. This study proposes a systematic framework for deriving optimal operating rules for hydro–hydrogen–wind–photovoltaic hybrid power systems within a coupled electricity-hydrogen market. An integrated market model is formulated to represent dynamic supply–demand interactions, followed by a long-term deterministic optimization model to maximize system revenue and reliability. The operating rule parameters are calibrated using functional-form fitting, and the optimal parameters are derived through a parametrization–simulation–optimization method. A case study on China's Ertan hydro–hydrogen–wind–photovoltaic system demonstrates that the proposed rules increase the average annual revenue from 382.75 to 513.36 million USD (+34.12 %), while the assurance rate rises from 89.32 % to 95.83 % (+7.29 %). Reservoir release is identified as the dominant variable, guiding adaptive allocation of electricity between grid supply and hydrogen production. This work advances the operational design of hybrid systems by offering a practical, market-responsive rule framework suited for integrated energy systems under evolving multi-energy market conditions.

Suggested Citation

  • Gong, Yu & Liu, Tingxi & Liu, Pan & Li, Wanyu & Li, Chao & Hao, Lina, 2025. "Optimal operating rules of hybrid power systems considering the integrated electricity and hydrogen markets," Energy, Elsevier, vol. 335(C).
    • Handle: RePEc:eee:energy:v:335:y:2025:i:c:s0360544225039210
    DOI: 10.1016/j.energy.2025.138279
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