Grid-supportive electrolysis in distribution grids: techno-economic and regulatory analysis for Austria

Grid-supportive electrolysis in distribution grids: techno-economic and regulatory analysis for Austria | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Grid-supportive electrolysis in distribution grids: techno-economic and regulatory analysis for Austria Philipp Ortmann, Roman Schwalbe, Andreas Patha, Klara Maggauer, and 6 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6346501/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Background: Strong expansion of intermittent renewable generation puts increasing pressure on distribution grids and requires significant grid enforcement measures. Electrolysis may act as an alternative to conventional grid enforcement to overcome grid constraints in a timely and effective manner as it creates additional flexible load and thus enables renewable production peaks to be absorbed. In doing this, conventional grid enforcement measures are avoided and additional value is created through the production of hydrogen.The focus of this work is on two aspects: First, a regulatory analysis is undertaken to develop feasible organisational models since DSOs are typically not allowed to engage in generation activities. Second, a techno-economic analysis is done for four case studies in the network area of 'Energienetze Steiermark' in Austria. Thereby, grid simulation determines the minimum grid-supportive operation and is combined afterwords with profit-maximising dispatch of the electrolysis against market prices. A technical simulation assures that non-linearities and minimum stable generation of the electrolysis are respected. In a cost-benefit analysis, the net benefit was compared against the costs of conventional grid enforcement measures. Results: The regulatory analysis reveals that ownership of electrolysis by DSOs is almost ruled out by European and Austrian legislation. Only after an exceptional permission from the regulatory authority following a negative tender, the DSO is allowed to operate the facility in a grid-supportive way only. The results of the techno-economic analysis show that the capacity factor for the electrolysis is below 5 % when operated in grid-supportive mode only but a hydrogen price above 6 EUR/kg incentivizes market based operation and contributes to resolving the grid congestion. Conclusions: Ownership of the electrolysis can be awarded to a market player and the flexibility service can be procured by the DSO. It is not economically viable to operate electrolysis for grid-supportive purposes only. In general, if the price of hydrogen is high enough, profit maximising behavior of the electrolysis partly resolves the grid congestion and the overall benefits outweigh the costs. This conclusion also holds when comparing the economic results of the electrolyzer against conventional grid enforcement measures. Electrolysis Distribution grid Hydrogen Grid-supportive operation Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6346501","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":439608364,"identity":"db30a9a8-d649-4623-947a-73f33c476ff3","order_by":0,"name":"Philipp 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operation","lastPublishedDoi":"10.21203/rs.3.rs-6346501/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6346501/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003e\u003cstrong\u003eBackground:\u003c/strong\u003e Strong expansion of intermittent renewable generation puts increasing pressure on distribution grids and requires significant grid enforcement measures. Electrolysis may act as an alternative to conventional grid enforcement to overcome grid constraints in a timely and effective manner as it creates additional flexible load and thus enables renewable production peaks to be absorbed. In doing this, conventional grid enforcement measures are avoided and additional value is created through the production of hydrogen.The focus of this work is on two aspects: First, a regulatory analysis is undertaken to develop feasible organisational models since DSOs are typically not allowed to engage in generation activities. Second, a techno-economic analysis is done for four case studies in the network area of 'Energienetze Steiermark' in Austria. Thereby, grid simulation determines the minimum grid-supportive operation and is combined afterwords with profit-maximising dispatch of the electrolysis against market prices. A technical simulation assures that non-linearities and minimum stable generation of the electrolysis are respected. In a cost-benefit analysis, the net benefit was compared against the costs of conventional grid enforcement measures.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eResults:\u003c/strong\u003e The regulatory analysis reveals that ownership of electrolysis by DSOs is almost ruled out by European and Austrian legislation. Only after an exceptional permission from the regulatory authority following a negative tender, the DSO is allowed to operate the facility in a grid-supportive way only. The results of the techno-economic analysis show that the capacity factor for the electrolysis is below 5 % when operated in grid-supportive mode only but a hydrogen price above 6 EUR/kg incentivizes market based operation and contributes to resolving the grid congestion.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eConclusions:\u003c/strong\u003e Ownership of the electrolysis can be awarded to a market player and the flexibility service can be procured by the DSO. 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