IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v262y2026ics0960148126001631.html

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

Author

Listed:
  • Cao, Xuwen
  • Li, Miao
  • Weng, Yangcui
  • Xie, Pu

Abstract

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.

Suggested Citation

  • Cao, Xuwen & Li, Miao & Weng, Yangcui & Xie, Pu, 2026. "Hydrogen production through renewable energy and storage systems: Economic viability and market expansion," Renewable Energy, Elsevier, vol. 262(C).
    • Handle: RePEc:eee:renene:v:262:y:2026:i:c:s0960148126001631
    DOI: 10.1016/j.renene.2026.125338
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148126001631
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2026.125338?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ruan, Yunsheng & Wang, Wenqing & Abubakar, Muhammad & Ahmad, Nazeer, 2025. "Global economic resilience: Developing green growth strategies, renewable energy integration, and environmental economics for sustainability," Renewable Energy, Elsevier, vol. 251(C).
    2. Jiahao Shen & Ridwan Lanre Ibrahim & Kazeem Bello Ajide & Mamdouh Abdulaziz Saleh Al-Faryan, 2024. "Tracking environmental sustainability pathways in Africa: Do natural resource dependence, renewable energy, and technological innovations amplify or reduce the pollution noises?," Energy & Environment, , vol. 35(1), pages 88-112, February.
    3. Rehman, Faheem Ur & Islam, Md. Monirul & Raza, Syed Ali, 2023. "Does disaggregate energy consumption matter to export sophistication and diversification in OECD countries? A robust panel model analysis," Renewable Energy, Elsevier, vol. 206(C), pages 274-284.
    4. Li, Ke & Mu, Yuchen & Yang, Fan & Wang, Haiyang & Yan, Yi & Zhang, Chenghui, 2024. "Joint forecasting of source-load-price for integrated energy system based on multi-task learning and hybrid attention mechanism," Applied Energy, Elsevier, vol. 360(C).
    5. Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "The Role of Environmental Regulations, Renewable Energy, and Energy Efficiency in Finding the Path to Green Economic Growth," Energies, MDPI, vol. 16(7), pages 1-18, March.
    6. Sui, Bo & Sharma, Susan Sunila & Yao, Liu-Yang & Ni, Guo-Hua & Chang, Chun-Ping, 2024. "Does aging affect renewable energy? The role of extreme events and economic development," Energy Economics, Elsevier, vol. 133(C).
    7. Iswan Prahastono & Hendry Timotiyas Paradongan & Indra A. Aditya & Kevin M. Banjarnahor & Ngapuli Irmea Sinisuka, 2023. "Photovoltaic Power Plant Feasibility Study Based on Indonesia’s Renewable Energy Tariffs: A Study of Nusa Penida Solar Power Plant," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 221-228, September.
    8. Peng, Hong & Chen, Hailin & Sun, Yong & Zhang, Xiaofeng & Abubakar, M., 2024. "Environmental economics of green recovery in mineral extraction: Balancing production and conservation," Resources Policy, Elsevier, vol. 96(C).
    9. Bao, Zongke & Ji, Weiwei & Abdullayeva, Samira & Teymurova, Vusala & Ali, Safdar, 2025. "Investor attention, ESG strength, and green innovation efficiency: A two-stage network DEA approach for Chinese listed manufacturers," International Review of Economics & Finance, Elsevier, vol. 104(C).
    10. Yang, Tianrun & Liu, Wen & Kramer, Gert Jan, 2024. "Seasonal thermal energy storage employing solar heat: A case study of Heilongjiang, China, exploring the transition to clean heating and renewable power integration," Energy, Elsevier, vol. 305(C).
    11. Li, Wei & Abu bakr, Muhammad, 2025. "Assessing the economic feasibility of renewable integration in district heating and cooling networks for sustainable urban development," Energy, Elsevier, vol. 339(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yan, Bin & Liu, Fang, 2026. "Green hydrogen integration into national transportation and energy systems: Policy roadmaps for low-carbon mobility transitions," Energy, Elsevier, vol. 346(C).
    2. Zheng, Mingbo & Zhang, Xinyu, 2025. "Digitalization and renewable energy development: Analysis based on cross-country panel data," Energy, Elsevier, vol. 319(C).
    3. Hiris, Daniel & Bode, Florin & Balan, Mugur, 2025. "Cross-validation of numerical methods for investigating the heating process in large-volume thermal storage tanks," Energy, Elsevier, vol. 340(C).
    4. Ugur Korkut Pata & Selin Karlilar Pata, 2024. "Towards sustainable development in African countries: Are modern and combustible renewable energies effective?," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 6493-6503, December.
    5. Wang, Jun-Zhuo & Feng, Gen-Fu & Chang, Chun-Ping, 2024. "How does political instability affect renewable energy innovation?," Renewable Energy, Elsevier, vol. 230(C).
    6. Duan, Pengfei & Zhao, Xiaoyu & Hu, Jinxue & Li, Kang & Xue, Qingwen & Cao, Xiaodong & Wang, Yanmin & Zhao, Bingxu & Zhang, Chenyang & Yuan, Xiaoyang, 2026. "Multi-energy load forecasting incorporating AI algorithms: research status and trends in integrated energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 229(C).
    7. Liu, Guanglu, 2026. "Visual fidelity and price transparency in luxury-brand NFTs: Impacts on consumer authenticity perceptions and purchase intentions in metaverse retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 90(C).
    8. Jiawen Shi & Pingping Sun & Weinan Liu & Jiangjun Yuan, 2025. "The Intrinsic Characteristics and Development Trends of Elderly Care Service in China: A Policy Perspective," SAGE Open, , vol. 15(3), pages 21582440251, August.
    9. Wen, Huwei & Shang, Junjie & Nghiem, Xuan-Hoa, 2025. "Does artificial intelligence matter for the population aging-inclusive growth nexus? International evidence," Telecommunications Policy, Elsevier, vol. 49(4).
    10. Muhammad Sibt-e-Ali & Xia Xiqiang & Kashif Javed & Muhammad Qasim Javaid & László Vasa, 2026. "Greening the future: assessing the influence of technological innovation, energy transition and financial globalization on ecological footprint in selected emerging countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(1), pages 2105-2131, January.
    11. Liu, Yang, 2026. "Environmental regulation, economic policy uncertainty, and geopolitical risk: Impacts on energy productivity in OECD countries," Renewable Energy, Elsevier, vol. 257(C).
    12. Yan Ma & Gen‐Fu Feng & Zhu‐jia Yin & Chun‐Ping Chang, 2025. "ESG disclosures, green innovation, and greenwashing: All for sustainable development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 1797-1815, April.
    13. Jiancheng, Xi & Boateng, Seth Acquah & Karikari, Frank Agyemang & Khan, Sana & Sackitey, Gabriel Mordzifa & Fumey, Michael Provide, 2026. "Financial markets and renewable energy transitions: Evidence from energy investment, domestic credit, market capitalisation and institutional quality," Energy, Elsevier, vol. 346(C).
    14. Aziz, Muhammad, 2026. "Hydrogen energy integration for renewable power transition in South Asia: A strategic assessment towards sustainable development," Renewable Energy, Elsevier, vol. 258(C).
    15. Chen, Xia & Zhang, Huimin & Zhao, Xin Xin & Gong, Qiang & Chang, Chun-Ping, 2024. "Do renewable energy investment and financial development mitigate climate change?," Journal of Asian Economics, Elsevier, vol. 93(C).
    16. Virgilijus Dirma & Laima Okunevičiūtė Neverauskienė & Manuela Tvaronavičienė & Irena Danilevičienė & Rima Tamošiūnienė, 2024. "The Impact of Renewable Energy Development on Economic Growth," Energies, MDPI, vol. 17(24), pages 1-23, December.
    17. Peng Chen & Li Lan & Yanyuan Qian & Mingxing Guo & Wenhui Zhao, 2025. "Multi-Faceted Collaborative Investment Models and Investment Benefit Assessment Under the New Type Power System," Energies, MDPI, vol. 18(15), pages 1-26, July.
    18. Jialin Li, 2026. "How natural resource consumption, trade, energy transition, and geopolitical risk drive sustainable development in G20 nations?," Natural Resources Forum, Blackwell Publishing, vol. 50(1), pages 659-684, February.
    19. Li, Ke & Qin, Zheng & Mu, Yuchen & Wang, Haiyang & Bie, Qingfeng & Yin, Xianxin & Yan, Yi, 2025. "Transfer learning-based multi-energy load forecasting method for integrated energy system with zero-shot," Applied Energy, Elsevier, vol. 401(PC).
    20. Yurtkuran, Suleyman, 2025. "The impact of energy efficiency and renewable energy R&D spending on environmental quality: Evidence from Germany by cross-quantilogram approach," Renewable Energy, Elsevier, vol. 253(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:262:y:2026:i:c:s0960148126001631. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.