Value of Combining Hydrogen Production with Wind Power in Short-Term Electricity Markets

This paper presents a methodology for optimizing the operation of a hydrogen (H-2) production plant in combination with stochastic generators, such as wind turbines, in short-term power markets. The method finds the optimal contracted power exchange with the market before gate-closure and produces an optimal operational plan. The method takes into account probabilistic wind forecasts, spot market prices and expected costs of balancing power. The value of combined operation is shown through a general case study. Results show that combining controllable H-2 production with wind power can cost-effectively reduce a substantial share of the power imbalances resulting from Wind forecast uncertainties. The operation of the H-2 plant is also very dependent on the variations in the hourly spot price. A strategy that simply seeks to minimize the imbalance leads to a much greater imbalance reduction, however at the expense of a higher H-2 production cost.