Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272963 
Year of Publication: 
2022
Series/Report no.: 
ESRI Working Paper No. 734
Publisher: 
The Economic and Social Research Institute (ESRI), Dublin
Abstract: 
This work analyses the trading of strategic merchant hydrogen technologies in energy and ancillary services markets. The hydrogen firms trade in two markets: 1) a joint hydrogen and energy/reserves day-ahead market and 2) the balancing settlements market. We contrast the co-optimized markets with trading in an energy-only market. Trading both energy and ancillary services leads hydrogen firms to produce and use more hydrogen, leading to less reliance on fossil fuels and an increase in the revenue streams of the electrolysis-based firms. The problem is formulated as a stochastic multi-leader-multi-follower model. Each leader firm solves a bi-level Stackelberg problem. The upper-level is the Nash game among strategic firms. The lower-level is an instance of a Generalized Nash Equilibrium of the followers.
Subjects: 
OR in energy
Energy markets
EPEC
Hydrogen economy
Stackelberg model
Document Type: 
Working Paper

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