Electrolyzers in the control energy market

Electrolyzers are considered flexible consumers in the energy system. However, their economic efficiency depends not only on technical parameters, but above all on how they fit into markets and grids.
While previous models have shown that electricity prices and storage utilization in particular determine the mode of operation in a scenario without control energy, our colleagues are now focusing on another aspect: participation in the control energy market—specifically in secondary control power (aFRR).

How does this market work?

👉On the power market, operators offer capacities in 4-hour time slices (at least 1 MW). Awards are made according to the merit order principle.
👉An award comes with the obligation to also submit an offer on the labor market.
👉The labor market trades energy that is called up at short notice – up to 15 minutes, also according to the merit order principle.
👉Participation in the labor market is possible even without a contract on the power market.

This broadens the picture: participation in the control energy market opens up new revenue opportunities, but at the same time changes the operating mode and storage requirements of electrolysers. Their future role in the energy system will therefore depend not only on pure hydrogen production, but also on their ability to provide system services.

More about H2-Companion: H2-Companion – Begleitforschung zur Modellregion Grüner Wasserstoff Baden-Württemberg – IREES GmbH

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