School of Economics and Management, North China Electric Power University, Beijing 102206, China; Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Beijing 102206, China
Under the ambitious goal of carbon neutralization, photovoltaic (PV)-driven electrolytic hydrogen (PVEH) production is emerging as a promising approach to reduce carbon emission. Considering the intermittence and variability of PV power generation, the deployment of battery energy storage can smoothen the power output. However, the investment cost of battery energy storage is pertinent to non-negligible expenses. Thus, the installation of energy-storage equipment in a PVEH system is a complex trade-off problem. The primary goals of this study are to compare the engineering economics of PVEH systems with and without energy storage, and to explore time nodes when the cost of the former scenario can compete with the latter by factoring the technology learning curve. The levelized cost of hydrogen (LCOH) is a widely used economic indicator. Represented by seven areas in seven regions of China, results show that the LCOH with and without energy storage is approximately 22.23 and 20.59 yuan/kg in 2020, respectively. In addition, as technology costs drop, the LCOH of a PVEH system with energy storage will be less than that without energy storage in 2030.
. [J]. Frontiers of Engineering Management, 2023, 10(4): 672-694.
Xingmei LI, Xiaoyan LV, Wenzuo ZHANG, Chuanbo XU. Can energy storage make off-grid photovoltaic hydrogen production system more economical?. Front. Eng, 2023, 10(4): 672-694.
0 in 1–5 years, 1.2 in 6–10 years, 1.5 in 11–20 years
Number of workers
12
Annual salary per capita (yuan)
60000
Withdrawal rate of employee welfare (%)
14
Overall rate of labor insurance (%)
31
Withdrawal rate of housing provident fund (%)
12
Material cost (yuan/kW)
20
Other expenses (yuan/kW)
30
Premium rate (%)
0.25
Financial parameters
Capital ratio (%)
20
Annual interest rate of loan (%)
5
Loan term (year)
15
Enterprise benchmark rate of return (%)
8
Unit life (year)
15
Discount rate (%)
8
Tax parameters
Income tax (%)
25 (three exempts and three halves)
Value added tax (%)
7 (50% immediate withdrawal)
Urban construction tax (%)
5
Education surcharges (%)
5
Parameter
Value
Energy storage plant related parameters
Unit investment cost (yuan/kW)
1200
Installed capacity (kW)
150000
Residual value rate (%)
5
Depreciation period (year)
4
Energy storage plant learning rate
0.3
Operation and maintenance parameters
Repair rate (%)
0 in 1–3 years, 1.2 in 4–5 years
Number of workers
8
Annual salary per capita (yuan)
60000
Withdrawal rate of employee welfare (%)
14
Overall rate of labor insurance (%)
31
Withdrawal rate of housing provident fund (%)
12
Material cost (yuan/kW)
20
Other expenses (yuan/kW)
30
Premium rate (%)
0.25
Financial parameters
Capital ratio (%)
20
Annual interest rate of loan (%)
5
Loan term (year)
15
Enterprise benchmark rate of return (%)
8
Battery life (year)
5
Discount rate (%)
8
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