Summary of Market Opportunities for Electric Vehicles and Dispatchable Load in Electrolyzers

Electric vehicles (EVs) and electrolyzers are potentially significant sources of new electric loads. Both are flexible in that the amount of electricity consumed can be varied in response to a variety of factors including the cost of electricity. Because both EVs and electrolyzers can control the timing of electricity purchases, they can minimize energy costs by timing the purchases of energy to generation. Existing rate structures and demand programs allow for some reduction in capacity costs; however, programs that come closest to allowing the highest level of scheduling control such as demand-based rates or real-time pricing are relatively rare for residential consumers. The provision of ancillary services from EV charging has the potential to provide some additional value; however, the overall revenue opportunities are small relative to the benefits of reduced costs associated with controlled charging. For electrolyzer use, timing of production can also act to reduce both capacity and energy costs. The primary tradeoff will be between equipment utilization and cost minimization. Sale of hydrogen is the main revenue stream and participation in electricity markets, new rate-structures or DR programs provides a decrease in costs, but also potentially a decrease in production. As such, the value of participation that impacts the operation of electrolyzers must be weighed against the opportunity cost of produced hydrogen.