Electrolyzers in the energy system – modeling economic
operating strategies

Electrolyzers can respond flexibly to fluctuating renewable power generation and thus provide green hydrogen. However, industrial use is associated with high investment and operating costs, which must be addressed through appropriate operating strategies.

As part of the H2 Companion project, IREES is developing an optimization model that optimizes the operation of an electrolyzer under technical, economic, and regulatory constraints. The aim is to minimize the levelized cost of hydrogen (LCOH₂) in order to ensure the economic viability of production. This requires technical input data that define the electrolyzer’s performance and design, such as efficiency, load flexibility, and operating limits.

The model integrates these technical parameters with variable electricity prices, market mechanisms, and regulatory requirements to find the minimum LCOH₂ under certain conditions.
Various operating strategies are analyzed, including electricity price-oriented operation with battery storage and participation in the spot market, long-term power purchase agreements (PPAs), the flexible provision of balancing energy, storage and marketing of hydrogen, and the use of by-products such as oxygen and waste heat.

This provides a sound basis for evaluating economically viable options for using electrolysers under different conditions.✅

More about H2-Companion: H2-Companion – Accompanying research for the Baden-Württemberg Green Hydrogen Model Region – IREES GmbH

IREES – RESEARCH FOR FUTURE 🌍🍃