Hydrogen’s impact on grids: Impact of hydrogen integration on power grids and energy systems

Abstract

The EU is undergoing an energy transformation towards a climate-neutral continent by 2050. It has set targets to progressively reduce greenhouse gas emissions towards clean energy to reach this goal and deliver on the EU’s Paris Agreement commitments. These high-level climate targets will require structural changes in various sectors and impact society and the economy. Decarbonisation is reached mainly through electrifying various sectors (currently relying on fossil fuels) stemming from variable Renewable Energy Sources (vRES) and low-emission sources complemented by low-carbon gases. Energy system integration refers to planning and operating the energy systems “as a whole” across multiple energy carriers, infrastructures, and consumer sectors. It creates more robust links between them to deliver low-carbon, reliable and resource-efficient energy services at the least possible cost for society.3 It should aim at optimising the whole energy system rather than decarbonising and making separate efficiency gains in each sector independently. As for the future, flexibility, both from short-term and long-term perspectives, will get even more crucial for the secure and efficient functioning of an integrated energy system applying a “one system view”. This flexibility shall also come from sector integration: linking the various energy carriers - electricity, heat, cold, gas, solid and liquid fuels - with each other and the end-use sectors, such as buildings, transport or industry. The secure and reliable operation of the coupled vectors “as a whole” is of utmost importance and priority for the grid operators, whose role will increase, especially during their sustainable integration. The discussion on hydrogen as an energy carrier for the EU's decarbonisation intensified in 2020. In line with recent EU strategies on innovative sector integration and hydrogen, there is a consensus that hydrogen will play an essential role in the future. Thus, ETIP-SNET intends to understand the benefits and challenges of the hydrogen topic as a direct impact on power system operation and planning and, more broadly, in an optimised whole energy system perspective. In particular, this paper addresses the following High-Level Use Cases (HLUC) that are defined in the ETIP-SNET R&I Roadmap 2022-2031: HLUC1 “Optimal Cross Sector Integration and Grid Scale Storage”, HLUC4 “Massive RES Penetration into the Transmission and Distribution Grid”, HLUC5 “One-Stop Shop and Digital Technologies for Market Participation of Consumers (Citizens) at the Centre” and HLUC9 “Flexibility Provision by Buildings, Districts and Industrial Processes”. This paper presents key findings, principles, and key messages for addressing R&D efforts and market/regulation changes needed. As stated in the 2022 Joint Clean Hydrogen Partnership and Mission Innovation report, Europe´s ambition and position aim at significantly increasing Hydrogen valleys in Europe “Europe is very much a frontrunner, with the European Commission increasing political targets for hydrogen and introducing policies and regulation to support market development: After the EU Green Deal and the “Fit-for-55” package, the “REPower EU” plan aims for a speed-up and scale-up of renewable energy build-out and production and usage of clean hydrogen, amongst other objectives, calling for doubling the number of Hydrogen Valleys in Europe.“ The paper's main body specifically addresses the impact on the power grids and the energy system. In Appendix 1 a comprehensive overview is reported on hydrogen's role in decarbonisation, demand, production and supply chain, including storage and transport options, while Appendix 2 reports on a use case in MV / LV.