The economics of power-to-gas and H2-based technologies, a modeling perspective

Electricity markets with high proportions of intermittent Renewable Energy Sources (RES) generation can experience periods of excess supply, resulting in near-zero and possibly negative prices, or energy spilling due to surplus. Against this background, the diffusion of emerging hydrogen-based technologies such as the so-called Power-to-X technologies in a sector coupling perspective, such as Power-to-Gas (PTG), is expected to provide a source of demand flexibility to the power sector and decarbonize the gas sector. 

The purpose of this doctoral project is to examine the multifaceted economics of these technologies. More specifically, it will successively examine the three following topics:
- 1 - the economics of PTG in imperfectly competitive energy markets
These economics will be examined using an adapted equilibrium model. Our intention is to study the PTG revenues from arbitrage opportunities as well as the market outcomes and the associated welfare distribution across both sectors.

- 2- the value of the flexibility services provided by PTG 
Our ambition is to assess that value and evaluate the relative merits and costs of PTG solutions with respect to alternative sources of flexibility (e.g., battery storage, hydropower...)

- 3 - Support mechanism for investments in PtG technology
A question of special interest is whether a dedicated support mechanism is needed for these technologies and if yes whether an adapted "carrot and stick " mechanism can be designed to foster the deployement of that technology

Encadrant IFPEN :
Dr Olivier MASSOL
PhD student of the thesis:
Promotion 2021-2024