REMEDYING UNDERPERFORMING SOLAR PV ASSETS WITH ELECTROLYZER RETROFITS

Abstract

This study explores and quantifies the value of retrofitting utility-scale solar PV-only assets with PEM electrolyzers to produce green hydrogen. Momentum for global hydrogen demand as well as pathways towards decarbonization, are discussed. The study then highlights ways in which green hydrogen electrolyzers could benefit solar PV assets’ financial performance. Hypothetical assets within California’s CAISO jurisdiction are examined and good candidates for retrofits are identified. Aspects unique to the CAISO market are fleshed-out like The Duck Curve and the high proportion of renewable energy sources. The study uses a Monte Carlo simulation to demonstrate probabilistic combinations of solar PV and green hydrogen lifecycle costs. Use of this framework as a guide would enable project developers and/or investors to facilitate necessary transitions to a reliable, affordable, and clean economy.