Summary:
Hydrogen production through renewable energy-powered electrolysis is pivotal for fostering a sustainable future hydrogen market. In the electricity sector, hydrogen production bears an additional demand that affects electricity price, and mathematical models are needed for the joint simulation, analysis, and planning of electricity and hydrogen sectors. This study develops a Cournot and a perfect competition model to analyze the links of the electricity and hydrogen sectors. In contrast to other solving methods approaches, the Cournot model is solved by convex reformulation techniques, substantially easing the resolution. The case studies, focusing on the Iberian Peninsula, demonstrate the region's potential for competitive hydrogen production, and the advantages of perfect competition to maximize the use of renewable energies, in contrast to Cournot's oligopoly, where the exercise of market power raises electricity prices. Sensitivity analyses highlight the importance of strategic decision-making in mitigating market inefficiencies, with valuable insights for stakeholders and policymakers.
Spanish layman's summary:
Este artículo propone un modelo de equilibrio de Cournot conjunto para los mercados de electricidad e hidrógeno a medio plazo, que representa tanto la producción de hidrógeno gris como verde. Se muestran varios casos de estudio realistas para el sistema MIBEL.
English layman's summary:
This paper proposes a joint Cournot equilibrium model for medium-term electricity and hydrogen markets, which represents both grey and green hydrogen productions. A real size MIBEL-like system is solved in the case studies.
Keywords: Cournot equilibrium; Electricity market; Hydrogen market; Hydrogen; Sector coupling
JCR Impact Factor and WoS quartile: 8,100 - Q1 (2023)
DOI reference:
https://doi.org/10.1016/j.ijhydene.2024.10.054
Published on paper: November 2024.
Published on-line: October 2024.
Citation:
L.A. Herrero, F.A. Campos, J. Villar, A joint Cournot equilibrium model for the hydrogen and electricity markets. International Journal of Hydrogen Energy. Vol. 90, pp. 1084 - 1099, November 2024. [Online: October 2024]
