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

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  • Lorenzo Diaz, Roberto Jair
  • Robles García, Jaime
  • Badaoui, Mohamed
  • Zaremba, Krzysztof

Abstract

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.

Suggested Citation

  • Lorenzo Diaz, Roberto Jair & Robles García, Jaime & Badaoui, Mohamed & Zaremba, Krzysztof, 2025. "Decarbonizing power generation: Integrating green hydrogen in the economic dispatch of combined-cycle power plants," Energy, Elsevier, vol. 336(C).
    • Handle: RePEc:eee:energy:v:336:y:2025:i:c:s0360544225041155
    DOI: 10.1016/j.energy.2025.138473
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    References listed on IDEAS

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