Real Options Conference 2023

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Uncertain Electricity Use From Renewables and The Flexible Use of Green Hydrogen

The northeast region of Brazil is rich in wind and solar resources, making it an ideal location for wind and photovoltaic (PV) generation. However, there is a ubiquitous degree of uncertainty regarding the demand for the generated electricity. Therefore, any excess electrical energy produced by the wind and PV farms has the flexibility to be converted into green hydrogen to address this uncertainty.

Green hydrogen is a clean and renewable energy source that offers many flexibilities for efficiently using excess electric energy. This helps to manage the variability of the wind and solar resources and provides a long-term storage solution for the extra power. In addition, the converted green hydrogen can be used as fuel for transportation, heating, and back to electricity generation, or stored for further use, offering significant value maximisation to all stakeholders.

Sidnei Oliveira-Cardoso
IAG Business School, Pontificia Universidade Catolica do Rio de Janeiro
Brazil

Florian Pradelle
Departamento de Engenharia Mecanica (DEM), Pontificia Universidade Catolica do Rio de Janeiro
Brazil

Luiz Eduardo Brandao
IAG Business School, Pontificia Universidade Catolica do Rio de Janeiro
Brazil

Carlos de Lamare Bastian-Pinto
IAG Business School, Pontificia Universidade Catolica do Rio de Janeiro
Brazil

 



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