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2397. Conditions on electricity purchasing: More (emission reduction) bang for your buck?

Invited abstract in session WD-9: Hydrogen and Electricity Modeling and Regulation II, stream Energy Markets.

Wednesday, 14:30-16:00
Room: 10 (building: 116)

Authors (first author is the speaker)

1. Lissy Langer
Technical University of Denmark (DTU)
2. Anders Bjørn
Technical University of Denmark
3. Ben Hobbs
Johns Hopkins University
4. Matthew Brander
University of Edinburgh Business School
5. Rasmus Bramstoft
Technical University of Denmark

Abstract

This paper analyzes the impact of different electricity purchase conditions on the carbon emissions of hydrogen production. These conditions are also discussed in the context of the revision of the Greenhouse Gas Protocol's carbon accounting rules for the purchase of voluntary renewable energy certificates to report companies' scope 2 carbon emissions. The techno-economic analysis presents a case study of hydrogen production in Denmark, a country with a relatively high share of renewable energy sources (RES), comparing the cost-optimal energy system for 2030 with a counterfactual scenario with no electricity purchase conditions. The study analyzes the impact of annual and hourly matching through power purchase agreements (PPAs) with local RES versus purchasing renewable energy certificates (RECs) through virtual PPAs on carbon emissions, system costs, and carbon reduction costs. We compare several European countries with different characteristics, such as varying initial RES shares, grid carbon intensity, and RES potentials. Our initial results suggest that the purchase conditions significantly affect the distribution of RES between countries, the additionality of RES, and the total system emissions.

Keywords

Status: accepted

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