Electricity cost of green hydrogen generation in the Iberian electricity market

Abstract

The green hydrogen (H2) technology has an important role to play in the European Union energy strategy towards decarbonization. Apart from traditional H2 industrial usages, there is an increasing attention to its use in the heavy transport sector, in other energy-intensive industries, and in heating applications. Green H2 production is planned to be based on renewable electricity generation and its production at an industrial scale may have a significant impact on the electricity markets. This research assesses the electricity cost of producing H2 and its impact on the Iberian electricity market. Different evolution scenarios including a partially flexible H2 demand, based on the Spanish and Portuguese energy and climate plans, have been considered for this assessment.