Financial Assessment of Microgrid’s Independence using RES and Hydrogen-Based Energy Storage

Abstract

The main difficulty that microgrids face is an economically feasible state of self-sustainability. The unpredictable behavior of dispersed Renewable Energy Sources (RES) and their stochasticity along with the usually high variability of electricity demand is a challenge for the stability of a microgrid. Therefore, innovative models for the development of energy systems that integrate new technologies in optimal and sustainable ways are required. Green hydrogen production is an emerging technology aiming to solve such problems through its use as a storage system within a viable business scheme. Integrating hydrogen production with RES and storage systems can enhance energy independence and economic opportunities. The focus of this paper is the proposal of a profitable financial scheme that leads to sufficient levels of the system’s independence from a main grid. Such an approach is implemented by a cost-effective pathway for a microgrid located in Crete through the simulation and investigation of its system that achieves high levels of selfsufficiency by incorporating RES backed by hydrogen-based energy storage. The proposed methodology relies on assessing the system’s sizing through the calculation of values that replicate its operation, with Net Present Value (NPV) serving as an indicator of the scheme’s profitability. The financial evaluation of the investment predicts, under specific assumptions, a total initial cost equal to 12,037,150.00 EUR, and an NPV of 20 years equal to 2,489,862,897.40 EUR.