Over the past few years, residential and small businesses have transformed from being simply consumers of energy to being consumers and producers, “prosumers”, generating their own power, and supplying energy back to the grid when there is a surplus.
At first this was just solar panels on the roof, but the array of devices available has vastly increased: wind turbines, heat pumps, micro-hydro, battery storage, and fuel cells. All these can be put together in local networks to form “virtual power plants” (VPPs). Aided by device management through AI and IoT.
Of course, this involves capital outlay for the user, but the gains in terms of energy payback and reduced emissions are significant. Also many people feel that they are “doing something” to offset the effects of climate change. Local power plants have significant advantages in terms of energy efficiency; they can improve grid reliability, lower distribution losses, aid decarbonization and improve costs.
Residential fuel cells are a viable component of VPPs that are becoming more available as the industry struggles with the problems of climate change and the need for sustainable energy alternatives. Although not as popular or available as heat pumps, fuel cells have the potential to revolutionize power to homes, stores and commercial buildings, lowering the dependency on fossil fuels and promoting a more environmentally-friendly future.
Small fuel cells, also known as home fuel cells or micro combined heat and power (micro-CHP) systems, generate electricity and heat by converting hydrogen and oxygen into water through an electrochemical process. Because of their efficiency, they emit lower greenhouse gases than more conventional energy sources like coal, oil, and natural gas, making them a desirable replacement.
The capacity of residential fuel cells to provide consistent and dependable electricity is the major benefit. Fuel cells can produce power continuously, unlike solar panels and wind turbines, which rely on the weather and have variable output, making them a good choice for places with little access to renewable resources and buildings that need a steady energy supply, for example industrial premises.
Fuel cells can also be used to charge EVs, so there is a synergy between a fuel cell system, and the EV's battery, which can supply the grid when not in use as transportation.
As part of a VPP, fuel cells can lead to substantial cost savings for the owners. By producing electricity on-site, fuel cells can reduce or even eliminate the need for grid-supplied power, resulting in lower energy bills. Additionally, the heat generated during the electrochemical conversion process can be utilized for domestic heating and hot water, further improving efficiency and reducing overall energy costs.
Countries like Germany and Japan have been at the cutting edge of developing affordable fuel cell units, planning widespread deployment targets. In Japan, the government aims to install 5.3 million residential fuel cells by 2030, instituting various incentives and subsidies to make the technology more accessible to consumers.
While the United States is still in the early stages of adopting residential fuel cells, interest is growing, with some states offering incentive programs to encourage their deployment. Recently the US Department of Energy has funded 43 pilot hydrogen and fuel cell projects across 16 states, which hopefully will pave the way for more widespread adoption.
Despite the positive developments, there are barriers to wide market penetration, such as the initial high cost of fuel cell systems and the limited availability and infrastructure for hydrogen fuel. However, as technology develops and governments continue to promote them, small fuel cells and VPPs have much potential for creating energy-efficiency savings in the grid system.