Integrating renewable energy communities and Italian UVAM project through renewable hydrogen chain

Abstract

Renewable energy communities (RECs) in Italy could play an important role in increasing the stock of electric renewable generation in the coming years. Their impact on the electric grid could be non-negligible. At the same time with increased electric generation from renewables, a greater need for electric national grid balancing is expected, preferably based on zero-emission energy storage. Based on currently existing entities in Italian regulation framework (i.e. REC and UVAM project), the present work proposes an original business model to create a storage of dispatchable renewable hydrogen to be used for balancing National electric grid. Hydrogen production is from excess of renewables in RECs constituted in the same area. UVAM project allows to access the ancillary services market with the minimum capacity of 1 MW that appears appropriate to the proposed scenario. Based on current technical-economic constraints of the technologies involved (electrolysis and both fuel cell and internal combustion engine fed by hydrogen), proposed business model is not day-present economic feasible: the return on investment is never positive. The cost forecasts available for 2035 indicate that the business model will be likely sustainable, with a net present value becoming positive for configurations with more than 3000 people involved in the RECs, with a photovoltaic penetration condition of 1.8 kWp/capita. This research work suggests an original business model for managers of RECs with an excess of renewables generation.