Energy Strategy Reviews (Sep 2024)
Evaluating the feasibility and economics of hydrogen storage in large-scale renewable deployment for decarbonization
Abstract
Renewable energy (RE) is pivotal for achieving a net-zero future, with energy storage systems essential for maximizing its utility. This study introduces a modeling framework that simulates large-scale RE deployment in Taiwan, emphasizing hydrogen as a primary storage medium. Utilizing hourly time steps, the model assesses various energy generation and storage configurations to demonstrate the technical feasibility of meeting Taiwan's 2050 net-zero target, which calls for a 60 % RE share primarily through solar and wind resources. However, achieving this target and the ambitious goal of 100 % RE penetration requires substantial enhancements in both generation capacity and storage solutions. The research evaluates the economic impacts by analyzing the levelized cost of energy (LCOE), revealing that optimal configurations, such as a wind capacity of 30 GW with a 5 % minimum capacity factor constraint on electrolyzers, significantly reduce LCOE to $0.176/kWh, underscoring the cost-effectiveness of hydrogen storage compared to battery alternatives in large-scale settings. The study underscores the necessity for ongoing investigations into replacing thermal power plants and maintaining grid stability amidst high RE penetration. To fully harness Taiwan's RE potential and contribute to global sustainability, effective deployment of hydrogen storage will require robust stakeholder support, continual technological advancements, and enabling policies. This framework, while tailored to Taiwan's power system, offers insights applicable to various global contexts.
