Economic feasibility of green hydrogen in providing flexibility to medium-voltage distribution grids in the presence of local-heat systems

The recent strong increase in the penetration of renewable energy sources (RESs) medium-voltage distribution grids (MVDNs) has raised need for congestion management such grids, as they were not designed this new condition. This paper examines to what extent producing green hydrogen through electrolyzers can profitably contribute alleviation MVDNs presence high amounts RES, well flexible consumers electricity and a local heat system. To address issue, an incentive-based method improving flexibility is used which based on single-leader–multiple-followers game formulated by bi-level mathematical programming. At upper level, system operator, who leader game, determines dynamic prices incentives at each node levels generation load. Next, lower providers flexibility, including producers using electrolyzers, price-responsive power consumers, producers, respond these reshaping their output consumption patterns. model applied region North Netherlands. obtained results demonstrate that converting be economically efficient way reduce when there amount RES. However, economic value decreases more other options provision exist.