REMOTE project: techno-economic analysis of H2- based energy storage systems in remote areas

The development of efficient and sustainable energy solutions and the attempt to reduce carbon dioxide emissions are leading to an increasing penetration of Renewable Energy Sources (RES). Effective Electrical Energy Storage (EES) solutions need therefore to be developed to deal with the issue of fitting locally available RES and loads. Hydrogen can become an interesting option because of its high energy density, long-term storage capability and modularity. In particular, in isolated micro-grid and off-grid remote areas, intermittent RES integrated with H2-based storage systems can provide a reliable, costeffective and decarbonized alternative to on-site electricity generation through diesel engines. In this context, the EU REMOTE project aims at demonstrating the technical and economic feasibility of H2-based energy storage solutions in remote locations: four demonstration sites have been selected in four different locations across Europe. According to the site, different RES sources are exploited: solar, wind, biomass or hydro. Their usage is optimized thanks to the operation of an H2-based Power-To-Power (P2P) technology. In fact, surplus RES energy can be supplied to the electrolyzer for H2 production. The fuel cell is then employed to generate electricity back during renewable power shortages. A battery bank is also adopted as complementary shorter-term electricity energy buffer. A centralized controller on-site will perform the management of the whole hybrid EES. The aim of this study is to develop a preliminary techno-economic analysis and demonstrate the effectiveness of the hybrid H2-battery Power-To-Power (P2P) solution in reducing the usage of external sources (e.g., diesel engines or grid) in a cost-effective way, with different load and environment conditions. The economic viability of the considered scenarios was outlined by computing the Levelized Cost Of Energy (LCOE). For each of the four sites, the innovative renewable configuration is compared with the current/alternative one. Main input data for the analysis were provided by the REMOTE project partners: techno-economic data from the technology suppliers, whereas electricity consumption and RES production values from the end users of the four isolated locations. Results from preliminary energy simulations revealed that the need for an external source is significantly reduced thanks to RES coupled with the hybrid storage system. Moreover, for all DEMOs the renewable solution was shown to be more profitable than the current or alternative one, either in the short term or in the longer term. 3 European GRID SERVICE MARKETS Symposium 3-4 July 2019, Lucerne Switzerland P03003: REMOTE project Page 2-12 Introduction Renewable Energy Sources (RES) will represent the major asset in the future energy mix, addressing the problem of fossil fuel progressive depletion and mitigation of greenhouse gas emissions. However, well-known challenges have to be overcome to allow RES widespread diffusion. Effective Electrical Energy Storage (EES) systems are in fact required to deal with the problem of intermittency of electricity production from RES (e.g., wind and solar) [1]-[3]. Hydrogen, in particular, can represent an interesting storage solution because of its high energy density and long-term storage capability [4]. Concerning off-grid and micro-grid environments, diesel engines are the dominant technology for electricity generation with more than 23 GW of installed capacity [5], mostly in island and large territorial states, despite the related high production costs and pollution problems [6]. Exploiting local renewable energy could be an alternative. However, EES solutions need to be adopted to better optimize local RES management allowing to achieve higher RES penetration levels. Intermittent RES coupled with H2-based energy storage systems can become an interesting choice [7]-[8] providing a reliable, cost-effective and decarbonized alternative to the common on-site electricity generation through diesel engines [9]. The presented work is performed within the framework of REMOTE (Remote area Energy supply Multiple Options for integrated hydrogen-based Technologies), a 4-year project (2018-2021) of the EU’s Horizon 2020 program [10]. REMOTE objective is to demonstrate the techno-economic feasibility of hydrogen-based energy storage solutions in isolated micro-grids and off-grids remote areas, in the 5-200 kW range of fuel cell power [11]. As shown in Figure 1a, four DEMOs will be installed in four different locations across Europe: Ginostra (South of Italy), Agkistro (Greece), Ambornetti (North of Italy) and Froan Islands (Norway). The last DEMO will be temporarily host in the mainland in Rye (Norway) for a 2year testing period before being moved to Froan. Each installation will complement locally available RES (i.e., solar, wind, biomass or hydro) with a hybrid energy storage system based on hydrogen and batteries, as schematically reported in Figure 1b. Stationary batteries are in fact commonly used to store energy on daily basis smoothing down the RES high-frequency variability [12]. However, when the energy storage is required for a longer period, batteries become expensive and the integration with H2-Power-To-Power (P2P) systems with medium/long-term capabilities can be a viable and reliable option [13]. The adoption of a proper Energy Management Strategy (EMS) is thus essential for a correct interaction of the various sub-systems with the aim of achieving good energetic and economic performances [14]. However, the task is challenging because of the high number of technologies to be integrated (i.e., RES power systems, battery and hydrogen-based devices). During the course of the project, data from real-life experience will be made available giving the possibility to define specific control strategies for each DEMO and providing valuable information for the system modeling. The variety of the involved DEMO cases will allow to gain significant learning from integration with existing infrastructure in real sites paving the way for the deployment of the P2P storage system at large scale. The aim of this study is to define the use cases of the four DEMOs, analyzing the technical solution proposed for each DEMO in order to evaluate how to improve the local situation. The various demonstration sites are described and the main technical data of the innovative RES + hybrid P2P system are presented. Preliminary energy simulations are carried out to demonstrate the effectiveness of the hybrid energy storage solution in reducing the usage of external sources (e.g., diesel engines). Finally, potential economic benefits are outlined comparing costs for the current or alternative and the suggested renewable solutions. 3 European GRID SERVICE MARKETS Symposium 3-4 July 2019, Lucerne Switzerland P03003: REMOTE project Page 3-12 Figure 1. a) Geographical location of the four demonstration sites. b) Operational sketch of the P2P system with H2 and batteries as energy storage mediums 1. DEMO’s description A summary of the main components involved in the suggested innovative solution for each DEMO is reported in Table 1. 1. Ginostra 2. Agkistro 3. Ambornetti 4. Rye RES Typology PV Hydro PV + Biomass PV + Wind Size 170 kW 0.9 MW 75 kW PV 49 kW Biomass 85 kW PV