Table 2 Case study scenarios
From: Active trading and regulatory incentives lower the levelized cost of green hydrogen in Greece
Context | RES compensation mechanism | PPA pricing | Market revenues | Aggregator charges | Temporal sub scenario | |
|---|---|---|---|---|---|---|
Base scenario 0 | No electricity market price arbitraging. The aim of the scenario is to evaluate the levels of electrolysis plant utilization required to achieve the minimum LCOH. | LCOE | LCOE without premiums | N/A | N/A | 0.a Monthly |
0.b Hourly | ||||||
Scenario 1: risk mitigation | Treat hydrogen, the RES producer, and the Aggregator as three different businesses. RES producer requires PaP compensation for the total of the production and manage a WACC-based margin. Aggregator undertakes no trading operations and charges the standard RES representation fees. | RES producer requires LCOE + WACC | Wind: LCOE + 5% PV: LCOE + 5.5% | Full to hydrogen producer | Standard representation fees 1 Euro per MWh | 1.a Monthly |
1.b Hourly | ||||||
Scenario 2: opportunity capture | The Aggregator provides trading operation services and is compensated through them. A portion of the RES energy is not hedged by the PPA and traded in the market to maximize value. Revenues are split between the parties according to the risk they undertake. RES producer requires an increased WACC for the hedged energy to balance. | RES owner hedges 80% of production via a PaP PPA. The RES producer receives an LCOE + WACC for 80%. For the remaining 20%, the RES producer receives a corresponding share of the market value. | Wind: LCOE + 6,3% PV: LCOE + 6% | Share between the hydrogen producer (75%), the RES producer (15%), and the Aggregator (10%) | Aggregator withholds 10% (5% from each party) of the market value and does not charge further due to active trading | 2.a Monthly |
2.b Hourly | ||||||
Scenario 3: hydrogen focus | RES owner, Aggregator, and Hydrogen producer are the same entity aiming at costing RES and representation/trading operations at cost to minimize LCOH and drive the Hydrogen market. | RES operates on LCOE. Aggregator maximizes market value and upholds 5% for operational cost | Wind: LCOE PV: LCOE | Share between the hydrogen producer (95%) and the Aggregator (5%) | Aggregator withholds 5% of the market value to cover operational costs and does not charge further | 3.a Monthly |
3.b Hourly |
