Design of an integrated electricity fuelled energy system and the systemic roles of hydrogen

The TSO / DSO system studies of the Dutch energy system [1] and the Dutch national government’s policy [2] show distinct scenarios which envision a climate neutral energy system. Through careful analysis of these scenarios and by studying the technological alternatives (potentially substitutes for the systemic roles of hydrogen), we have identified 3 systemic functions of hydrogen where a realistic alternative is not expected to be available in time and in sufficient numbers. Despite the costs and losses accompanying hydrogen, we find that hydrogen is a crucial energy carrier if a carbon free energy system is to be realized before 2050 that balances security of supply, affordability and limited available space. The disadvantages are largely compensated by the lack of affordable alternatives if and when implemented deliberately and well-balanced. Although this paper is based on the comprehensive studies and scenarios regarding the Dutch national energy system and its technical, financial and societal potential and limitations (e.g. geothermal Heat-to-Power, hydro power and storage, biomass potential), the fundamental design principles such as economic and spatial costs are broadly applicable. It is therefore advisable for other countries or regions to perform similar studies. While the outcomes maybe different, it does not deny the systemic functions of hydrogen itself.

Translating these insights on the 3 systemic roles of hydrogen to implementation requires integral design principles not only on TSO but also on DSO level. Regionalization of the national energy vision is not only necessary, but also foundational for creating a future-proof energy system. As an integrated DSO for electricity and gas that also develops heating networks and hydrogen infrastructures, Stedin is well-positioned to play a significant role in designing such an integrated energy system, in co-creation with regional authorities. With this regionalization, DSOs and municipalities can design the regional integral energy system that accommodates its proportionate share of hydrogen.

It is recommended that the systemic value of hydrogen should be highly valued in the electricity system. In that way, region-specific balanced energy visions can be derived.