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Projects: Projects for Investigator
Reference Number	NIA2_NGESO010
Title	The Role for Hydrogen as an Electricity System Asset
Status	Completed
Energy Categories	Hydrogen and Fuel Cells(Hydrogen, Other infrastructure and systems R&D) 100%;
Research Types	Applied Research and Development 100%
Science and Technology Fields	ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 100%
UKERC Cross Cutting Characterisation	Not Cross-cutting 100%
Principal Investigator	Project Contact No email address given National Grid ESO
Award Type	Network Innovation Allowance
Funding Source	Ofgem
Start Date	01 January 2022
End Date	31 March 2023
Duration	ENA months
Total Grant Value	£300,000
Industrial Sectors	Power
Region	London
Programme	Network Innovation Allowance
Investigators	Principal Investigator	Project Contact , National Grid ESO (100.000%)
	Industrial Collaborator	Project Contact , National Grid plc (0.000%)
Web Site	https://smarter.energynetworks.org/projects/NIA2_NGESO010
Objectives	Stage 1: Strategic review of hydrogen pathways and scenarios(Work package 1 – 4)Stage 1 will provide an overview of how the hydrogen sector is likely to evolve under a range of scenarios and provide the next level of detail for the FES analysis describing possible hydrogen transitions and system impacts. The stage will include:Research into long-term future hydrogen pathways and scenarios drawing on current projects and FES scenarios assumptions, and emerging thinking and ideas around hydrogen use, and extensive stakeholder engagement (NGESO and external).Considerations will include all elements of the hydrogen value chain (supply / generation, distribution, and end users), the role of storage, changing customer demands, and locational factors.A comprehensive list of hydrogen value chains will be produced and mapped to the electricity and gas system to identify the range of potential interactions, both physical and market based.Flexibility – in depth understanding of the interaction of hydrogen on whole system operation and how it can provide flexReviewing and challenging FES scenarios based on the value chain analysis.A range of impacts will be identified and through working with National Grid a shortlist will be agreed for further in-depth analysis.Stage 2: Analysis of short-listed impacts (Work package 5,6)During the second stage of work, several topics will be explored in more detail, based around the shortlisting of impacts in Stage 1. This analysis will provide evidence to inform the FES scenario development for 2022, and inform the assumptions and datasets used within the BID3 modelling to further develop the Hydrogen modelling capability. The nature and type of analysis conducted during stage 2 will vary depending on the topics explored but we anticipate a range of quantitative and qualitative research and analysis will be deployed.Stage 3: Support of Redispatch Power2X module development and data (Work package 8)WP8 will draw on the analysis in WPs 2 – 6, and supplementing this with further analysis provide additional research to support the development of the Redispatch module and the datasets and assumptions which drive it. Given the uncertainty around how this module will operate and the assumptions needed, it is difficult to be specific around tasks at this stage, and a more detailed specification would be developed at commencement of the work package. In line with the ENAs ENIP document, the risk rating is scored Low.TRL Steps = 1 (2 TRL steps)Cost = 1 (£300k)Suppliers = 1 (1 supplier)Data Assumptions = 1Total = 4 (Low) This project will provide National Grid ESO with:A more in depth understanding within / supplementing FES on the range of possible outcomes from a hydrogen transition.Identification of interactions of hydrogen with the electricity system and assessment of possible impacts, further work required to address these impacts, and gaps in current understanding.Evidence to support and refine the assumptions to allow modelling of hydrogen impacts (in particular electrolyser operation) into the existing NGESO market modelling environment (BID3) to understand their likely performance and contribution in the market. This project will follow a staged approach, based around an initial exploration stage followed by a more in-depth analysis stage. This will provide the opportunity to capture both the breadth of potential hydrogen interactions, and then focus more in-depth analysis on a sub-set of the impacts which are most pertinent to National Grid ESO in developing FES22 and supporting the modelling work going forward. The final outputs will include: A list of Hydrogen value chains representing a broad range of potential future market uses of hydrogenInsight and feedback for the Future Energy Scenarios team to inform FES22 development and a short list of value chains mapped to the FES scenarios for subsequent analysisReport summarising the analysis, with recommendations on priority areas for stage 2 analysisFinal summary report outlining the findings from each work package and the associated datasetsResearch report to support the development of the Redispatch module and the datasets and assumptions which drive it for the Network Options Assessment team
Abstract	The need to cost effectively decarbonise heat and the challenge this poses for electricity networks has led to a resurgence in innovation around low carbon gases, including hydrogen, and the conversion of our natural gas system into a low carbon gas system. Alongside the heating sector, there is also an increased interest in the use of Hydrogen for other purposes, such as industry and transportation. The generation and use of hydrogen has clear impacts on the electricity system and whilst it provides many opportunities to the broader energy system such as cross vector storage, it may also pose a number of challenges.NGESO need to understand how the development of hydrogen markets will interact with the electricity system, and how targeted hydrogen investment can more effectively support the electricity system.
Publications	(none)
Final Report	(none)
Added to Database	26/10/22