Path selection for wind power in China: Hydrogen production or underground pumped hydro energy storage?

Abstract

Hydrogen production from wind power and energy storage from wind power are considered as effective measures to overcome the problem associated with wind curtailment. However, their further development is clearly constrained by the incurred costs. Hydrogen production from offshore wind power (HPFW), hydrogen production from onshore wind power (HPNW), and underground pumped hydro energy storage from wind power (UPHESW) are considered in this paper. This paper employs a life cycle cost analysis to calculate and compare the levelized costs of hydrogen production and energy storage in China. A sensitivity analysis is conducted to evaluate the influences of different factors on levelized costs. The results show that the levelized cost of HPFW is 1.44 times that of HPNW. The levelized cost of UPHESW is lower than that of traditional pumped hydro energy storage with the same installed capacity and also lower than that of UPHESW with the smaller installed capacity. The economic competitiveness between UPHESW and HPNW depends on the installed capacity of UPHESW. If it exceeds 453 MW, UPHESW is more economical. If it remains below 453 MW, HPNW is more economical.