Summary:
Volatility in gas and electricity prices and the aim of the European Commission for decarbonizing the economy have led to a reform in the European electricity market and boosting hydrogen production. As it is well known, hydrogen and electricity have a symbiotic relationship. On the one hand, hydrogen from electrolysis relies on electricity, while hydrogen production offers flexibility to the electrical system by harnessing the renewable energy surplus. In this context, stakeholders and policymakers need tools to analyze this European reform considering the abovementioned dynamic relationships. This research aims to contribute to understanding them in the context of electricity and hydrogen markets, providing a practical tool for the agents to assess market signals in the energy transition. It presents a joint electricity and hydrogen market model based on the Cournot game theory, including contracts for both goods. The model resolution is based on a convex reformulation approach, substantially easing the output computation and its implementation. Real-size Iberian system cases are presented to analyze the impact of the represented contracts.
Spanish layman's summary:
La reforma del mercado eléctrico y el impulso al hidrógeno buscan abordar la volatilidad de precios y los objetivos de descarbonización. Esta investigación ofrece un modelo conjunto para analizar dinámicas de mercado y contratos.
English layman's summary:
The European electricity market reform and hydrogen production boost aim to tackle energy price volatility and decarbonization goals. This research provides a joint electricity and hydrogen market model to analyze market dynamics and contract impacts.
Keywords: Electricity market, hydrogen market, hydrogen purchase agreement, power purchase agreement, game theory
Registration date: 14/10/2024
IIT-24-298WP
