Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
11017554 | Applied Energy | 2018 | 15 Pages |
Abstract
We find that power-to-gas plants are not profitable under current market conditions: even under the most optimistic assumptions for the cost and revenue parameters, power-to-gas plants need to run for many hours during the year at very low prices (i.e. the long-term willingness to pay for electricity is very low) that do not currently exist in Europe. In an optimistic future scenario regarding investment costs, efficiency and revenues of power-to-gas, however, the long-term willingness to pay for electricity is higher than the lowest recently observed day-ahead electricity prices. When prices remain at this low level, investments in power-to-gas can thus become profitable.
Related Topics
Physical Sciences and Engineering
Energy
Energy Engineering and Power Technology
Authors
Charlotte van Leeuwen, Machiel Mulder,