Hydrogen Storage Optimal Scheduling for Fuel Supply and Capacity-Based Demand Response Program Under Dynamic Hydrogen Pricing

As the emerging technology offers more economic and efficient mechanisms for hydrogen production, fuel cell electric vehicles (FCEVs) are expected to be deployed more extensively in the near future. Proliferation of hydrogen fueling stations throughout the transportation network and justifying their economic viability are key factors to the success of the FCEVs. In today’s deregulated market environment, many governments are encouraging private investors to invest in key infrastructures including the hydrogen fueling stations. To that end, this paper proposes a new model for optimal scheduling of privately owned hydrogen storage stations to both serve the transport sector and the electricity market operator. The model mainly aims to: 1) exploit the lower electricity market prices to reduce the power purchase cost and 2) contribute to the capacity–based demand response program to further enhance the economic feasibility of the investment. The profitability constraints and dynamic hydrogen pricing mechanisms are incorporated into the optimization process to guarantee the economic feasibility of the investment. Through such constraints, hydrogen sale prices would dynamically change to maintain system profitability at the lowest possible hydrogen price. Numerical studies reveal that the stacked profit from the two aforementioned sources of revenue under the proposed model would lead to a stronger rate of return.