Optimal design of renewable generation mix for green hydrogen production

Abstract

Green hydrogen is emerging as a key energy vector for the decarbonization of modern energy systems by enabling the storage and transport of renewable energy. It is produced through water electrolysis powered by renewable electricity, either on-site or supplied by a high-renewable grid. Its applications include hard-to-abate industrial sectors (e.g., steel and cement), long-distance transport, and as a feedstock for chemical synthesis, including clean synthetic fuels when combined with CO2 capture. In power systems with high shares of wind and solar generation, green hydrogen also plays a strategic role in managing surplus energy and reducing curtailment. This paper develops a quantitative framework to determine the optimal mix of renewable generation technologies for hydrogen production, incorporating generation variability, grid interactions, and long-term financial evaluation based on Net Present Value.