Modeling and Optimization of a Hydrogen-Natural Gas Fuel Blend-Based Microgrid Considering the Social Cost of Carbon

Abstract

Microgrids improve the performance of energy systems while enabling the incorporation of renewable energy sources by providing a suitable platform for aggregating and coordinating distributed energy resources. This study presents a hydrogen-fueled microgrid model for meeting both electrical and thermal loads. In this model, a combined heat and power (CHP) unit with a hydrogen blended natural gas is deployed, where the required hydrogen is produced via an electrolyzer. By promoting increased hydrogen utilization and incorporating a realistic assessment of the social cost of carbon (SCC), the model evaluates the microgrid's CO2 emissions. Furthermore, by introducing an incentive framework through changeable electrical load modeling, both the environmental and economic aspects of the microgrid can be analyzed. The results indicate that the presence of changeable load and SCC increase the inclination toward hydrogen production by 26%, consequently reducing CO2 emissions by 27%.