Economic potential of power-to-gas energy storages

All over Europe and especially in Germany the expansion of Renewable Energy Sources is quickly proceeding. A possibility to cushion generation volatility (due to the supply dependence of wind and solar power) and to use surplus energy is storage. One of the most promising technologies for long-term energy storage is Power-to-Gas (PtG). This process produces hydrogen and optionally methane from electricity which is then injected into the natural gas infrastructure. Operators can market PtG plants by buying electricity and sell natural gas. Simulations of optimal plant dispatch show that the contribution margins attained today and until 2032 are not sufficient to cover variable and fixed costs. Even with additional marketing of negative tertiary reserve economic efficiency cannot be reached. With regard of upcoming competing technologies, PtG will not be profitable in the near future but can be an important part on the way to a renewable energy system.