Exploiting Electrolyzer Flexibility via Multiscale Model Predictive Control Cross Heterogeneous Energy Markets

TL;DR

This paper presents a multiscale model predictive control strategy enabling electrolyzers to actively participate in both day-ahead and real-time electricity markets, significantly reducing costs and potentially generating profit for green hydrogen production.

Contribution

It introduces a dynamic, multi-scale market participation framework for electrolyzers, leveraging market arbitrage to lower costs and increase profitability in green hydrogen production.

Findings

Near-zero or negative net electricity costs achieved.

Electrolyzers can profitably buy low in RTM and sell high back to the grid.

Significant cost reductions demonstrated in realistic scenarios.

Abstract

Green hydrogen production via electrolysis is crucial for decarbonization but faces significant economic hurdles primarily due to the high cost of the electricity. However, current electrolyzer-based hydrogen production processes predominantly rely on the single-scale Day-Ahead Market (DAM) for electricity procurement, failing to fully exploit the economic benefits offered by multi-scale electricity market that integrates both the DAM and the Real-Time Market (RTM), thereby eliminating the opportunity to reduce the overall cost. To mitigate this technical gap, this research investigates a dynamic operational strategy enabling electrolyzers to strategically navigate between the DAM and RTM to minimize net operation costs. Using a rolling horizon optimization framework to coordinate bidding and operation, we demonstrate a strategy where electrolyzers secure primary energy via exclusive DAM purchases, then actively engage the RTM to buy supplemental energy cheaply or, critically, sell procured DAM energy back at a profit during high RTM price periods. Our analysis reveals that this coordinated multi-scale electricity market participation strategy can dramatically reduce net electricity expenditures, achieving near-zero or even negative effective electricity costs for green hydrogen production under realistic market scenarios, effectively meaning the operation can profit from its electricity market interactions. By transforming electrolyzers from simple price-takers into active participants capable of arbitrage between market timescales, this approach unlocks a financially compelling pathway for green hydrogen, accelerating its deployment while simultaneously enhancing power grid flexibility.