Economic Evaluation of Implementing Power to Gas in a Sustainable Energy System

In a future energy system integrating more renewable sources while simultaneously reducing the use of fossil fuels in the energy as well as the transport sector will be one of the biggest challenges. The possibility to produce renewable gas by using surplus electricity can help tackling both problems. With a high share of volatile electricity generation like wind power the need for energy storage in order to balance production and demand increases. Via electrolysis hydrogen can be produced in times of high generation and low demand, taking advantage of lower electricity prices. The hydrogen can either be used directly or further be converted to methane gas, which can be utilized as a renewable alternative to natural gas, in the mobility or heating sector or for converting the gas back to electricity in times of high demand and low generation.