Integrating process and power grid models for optimal design and demand response operation of giga-scale green hydrogen

Electrolysis-based hydrogen production can play a significant role in industrial decarbonization, and its economic competitiveness can be promoted by designing demand response operating schemes. Nevertheless, the scale of industrial supply plants may be significantly large (on the order of gigawatts), meaning that electricity prices cannot be treated as an input for scheduling problems, that is, the “price taker” approach. This article presents a framework for the optimization of a large-scale, electricity-powered hydrogen production facility considering its integration with the power grid. Using a computational case study, we present an iterative scheme for integrating the process model with a model for power grid optimization and capacity expansion, taking the popular GenX model as an example.