Short communication: Local electricity-hydrogen market

Abstract

The transition to a sustainable energy system increasingly emphasizes the role of hydrogen in all parts of the energy system, and particularly in the context of local electricity markets. This paper explores the benefits, challenges, and implementation strategies associated with the development of a Local Electricity-Hydrogen Market (LEHM). By leveraging surplus renewable electricity for hydrogen production, LEHM can offer a cost-effective, flexible, and low-carbon solution to energy storage and utilization, particularly in the transport and industry sectors. However, significant obstacles such as economic trade-offs, transportation and storage costs, and regulatory challenges remain. Through a review of case studies and the proposal of an optimized LEHM model, this study highlights the potential of integrating hydrogen and electricity markets to enhance local and regional energy utilization, economic efficiency, and environmental sustainability.