Cost of long-distance energy transmission by different carriers

Abstract

This paper compares the relative cost of long-distance, large-scale energy transmission by electricity, gaseous, and liquid carriers (e-fuels). The results indicate that the cost of electrical transmission per delivered MWh can be up to eight times higher than for hydrogen pipelines, about eleven times higher than for natural gas pipelines, and twenty to fifty times higher than for liquid fuels pipelines. These differences generally hold for shorter distances as well. The higher cost of electrical transmission is primarily because of lower carrying capacity (MW per line) of electrical transmission lines compared to the energy carrying capacity of the pipelines for gaseous and liquid fuels. The differences in the cost of transmission are important but often unrecognized and should be considered as a significant cost component in the analysis of various renewable energy production, distribution, and utilization scenarios.

Keywords: Energy flexibility; Energy resources; Energy systems; Energy transportation.

Graphical abstract

Figure 1

Sankey diagram for energy consumption in the United States in 2019 compiled by Lawrence Livermore National Laboratory and the US Department of Energy (LLNL, 2020).

Figure 2

Combined technical potential for on-shore wind and utility scale photovoltaics resources in the USA by county normalized by the county land area in GWh/yr/mi² Data source: NREL analysis, (Lopez et al., 2012). Map courtesy of Nicholas Gilroy.

Figure 3

Capital cost of energy transmission over 1000 miles by different energy carriers Table 2 provides the detailed costs breakdown. Error bars for the pipelines demonstrate the 90% confidence interval resultant from the Monte Carlo analysis. For electricity transmission, +/− 50% of the total cost was used for the error bars in keeping with the estimate range reported in the literature for electrical transmission lines (Saadi et al., 2018; Eurek et al., 2016; Pletka et al., 2010).

Figure 4

Amortized cost of energy transmission over 1000 mi by different energy carriers Table 1 provides the detailed costs breakdown. Conversion of the transmission cost into the cost units customary for each energy carrier is shown in the parenthesis. Error bars for the pipelines demonstrate the 90% confidence interval resultant from the Monte Carlo analysis. For electricity transmission, +/− 50% of the total cost was used for the error bars in keeping with the estimate range reported in the literature for electrical transmission lines (Saadi et al., 2018; Eurek et al., 2016; Pletka et al., 2010).

Figure 5

Comparison of the capital cost of long-distance energy transmission by HVDC transmission line and by hydrogen pipeline normalized per (MW∗mile) between this model and published literature data.

Figure 6

Transmission cost for natural gas and oil pipelines at various pipeline diameters.

Figure 7

Comparison of transmission cost vs transmission distance.

Figure 8

Schematic of the renewable energy delivery cycle Only the transmission section is analyzed in this work.

Compressor and Pump Station Cost Curves The vertical and horizontal lines represent the cost of a 5,000 HP pumping station in 2017 dollars ($1,966/HP).

Optimization study for natural gas and hydrogen pipelines pressure drop between compressor stations The minimum is found at 56 bar and 21 bar, respectively.