An Optimization Model for Design and Operation Scheduling of Power-to-Gas Energy Storage

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Energy Storage Systems have recently become matters of significant interest to mitigate various existing andimminent issues of power systems. Among different storage technologies, Power-to Gas (PtG) is consideredthe most innovative technology to store and transport energy. The development of PtG technologies createspotential interactions between the electrical and gas sectors, which could lead to new options forlarge-capacities utility scale energy storage. In PtG, electrical energy is used to form hydrogen or syntheticnatural gas (SNG), which can then be injected, transported, stored, and used at a later time in the gas networkfor heating, transportation, and/or electrical generation.In this project, a model will be developed for the optimal design and operation scheduling of PtG. Theobjective of the model is to maximize the net revenue of PtG through its optimal dispatch for the combinedpurposes of producing renewable hydrogen/SNG fuel and providing power grid services. The services willinclude frequency regulation, spinning or Operating Reserve (OR), and Demand Response (DR). Also, thecontribution of PtG in balancing the generation and demand (ramping down) for long durations during periodsof surplus in baseload generation and/or high penetration levels of intermittent renewable energy resources willbe evaluated. To determine economic competitiveness of PtG compared to other energy storage systems,revenues from the sale of hydrogen and participation in wholesale electricity markets will be compared to thecapital cost and operating expenses over the lifetime of the PtG equipment.