Decarbonizing power generation: Integrating green hydrogen in the economic dispatch of combined-cycle power plants

A mathematical model is developed to optimize the economic dispatch of Combined Cycle Power Plants (CCPPs) integrating green hydrogen (H2), carbon taxation, and operational state transitions. Using an 8-bus IEEE test system with five CCPPs, the problem is formulated as a Mixed-Integer Linear Program (MILP). Hydrogen integration feasibility is assessed using Mexico’s Levelized Cost of Hydrogen (LCOH) projections (2023–2050). Thermoflow simulations yield cost and emissions curves for two scenarios: Case A, natural gas (NG), and Case B (20% H2/80% NG blend). These curves feed into the dispatch model to evaluate cost and emissions impacts. Results show that solar alkaline is the most economical hydrogen pathway, increasing operational costs by 7.9%. Hydrogen blending reduces CO2 emissions by 6.5%, which translates into a 3.8% reduction of national power sector emissions in 2023. Case B faces lower penalties under a carbon tax of 11.26 USD/tCO2e. However, Marginal Abatement Cost (MAC) analysis shows that competitiveness of H2/NG blending would only be achieved at much higher carbon prices (≥ 71.6 USD/tCO2e). The study offers a practical framework to assess hydrogen’s role in low-carbon power systems.