Sizing and design optimization of hybrid power plants with Power-to-Hydrogen: techno-economic and environmental assessment

Abstract

The urgent need to decarbonize European energy systems has positioned hybrid power plants with integrated power-to-hydrogen (P2H) as critical infrastructure for industrial decarbonization. This thesis investigates techno-economic optimization of hybrid plants combining wind, solar PV, battery storage, and electrolyzers across diverse European electricity markets. Using the HyDesign tool and 2024 datasets for weather, electricity prices, and grid carbon intensity in 13 countries, the study evaluates standalone electrolyzers, renewable-only hybrids, and integrated P2H under varying regulatory frameworks. Results show that P2H integration substantially reduces renewable curtailment while adding revenue streams, though economic performance involves trade-offs between higher profitability and reduced capital efficiency. Regional analysis highlights strong variations: low-cost electricity markets achieve high returns, while high-price markets make hydrogen production unviable. Implementation of Renewable Fuels of Non-Biological Origin (RFNBO) requirements removes viability in most markets, concentrating activity in countries with low-carbon grids. Environmental assessment confirms strong advantages, with green hydrogen far below the carbon intensity of blue hydrogen alternatives. Green hydrogen competitiveness requires coordinated policy support through CAPEX subsidies, green premiums, and industrial demand mandates. Findings show that hybrid plants with integrated hydrogen production can enhance renewable value and provide viable decarbonization pathways, provided regulatory frameworks align with local market conditions rather than uniform European rules.