Modeling the Dispatch of Electrolyzers Using Agent-based Electricity Market Simulation

To estimate the (future) impact of hydrogen generation on the electricity market, it is necessary to adequately consider electrolyzers' flexibility in models to evaluate the integration. Therefore, a cost-minimizing linear optimization problem for determining the dispatch of electrolyzers is integrated into an existing agent-based electricity market simulation model. In a case study with two scenarios considering most western European countries, effects on the wholesale electricity spot markets are investigated. Scenario one considers locally demanded and produced hydrogen. Scenario two assumes one single internal hydrogen market to cover all modeled markets. The results indicate that average wholesale electricity prices and renewable curtailments differ only slightly between scenarios. However, the cost of dispatching electrolyzers is substantially lower in one single internal hydrogen market. Additionally, the utilization of electrolyzers between markets is more evenly distributed. Hydrogen is produced mainly in markets with substantial wind potentials, such as Denmark and Great Britain.