Hydrogen production through renewable energy and storage systems: Economic viability and market expansion

This study proposes the best way to produce green hydrogen by combining a solar-wind renewable energy system with hydro-pumped energy storage and grid connection. The goal is to ensure the electrolyzer operates reliably over the long term while enhancing overall economic performance amid changing conditions in the renewable energy and power markets. We created a mixed-integer nonlinear optimization framework to coordinate the scheduling of hydrogen production, renewable energy generation, energy storage dispatch, and grid interaction. The results show that the integrated renewable energy–hydro-pumped storage–electrolyzer system can operate effectively by strategically importing electricity when prices are low and exporting excess energy when prices are high. Combining storage and market involvement makes the system more flexible and more profitable, enabling stable hydrogen production even when renewable energy sources are not always available. The economic role of hydro-pumped energy storage is strengthened by more variable electricity prices and more renewable energy sources. This results in much greater storage utilization and better system performance. The proposed operational strategy emphasizes the importance of market-responsive energy management and hydrogen production enabled by storage for the economical and reliable deployment of green hydrogen. The framework provides useful guidance on integrating large-scale renewable energy, energy storage, and hydrogen systems in real-world settings, helping drive the shift to low-carbon energy systems and lower emissions.