Optimizing Green Hydrogen Cost with PV Energy and Storage

Maria Cruz Arcos-Presedo and Angel Arcos-Vargas ()
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Maria Cruz Arcos-Presedo: School of Engineering, Universidad Pontificia Comillas, C/Alberto Aguilera 23, 28015 Madrid, Spain
Angel Arcos-Vargas: Department of Industrial Engineering and Management Science, School of Engineering, Universidad de Sevilla, 41092 Seville, Spain

Energies, 2025, vol. 18, issue 21, 1-20

Abstract: This work develops a replicable method for designing the optimal renewable hydrogen production facility, applicable to any site and based on technical parameters and actual equipment costs. The solution is based on the integration of photovoltaic (PV) energy with lithium-ion battery storage systems, which maximizes electrolyzer operating hours and significantly reduces the Levelized Cost of Hydrogen (LCOH). This study shows that increasing the inclination of the photovoltaic modules reduces the need for storage, optimizing operation and extending the electrolyzer’s annual operating hours. In the Seville case study, with current costs and efficiencies, a minimum LCOH of €4.43/kg was achieved, a value well below market benchmarks, opening the door to a potentially competitive industrial business. The analysis confirms that electrolyzer efficiency—particularly specific power consumption—is the most important factor in reducing costs, while technological progress in photovoltaics, storage, and equipment promises further reductions in the coming years. Overall, the proposed methodology offers a practical and scalable tool to accelerate the economic viability of green hydrogen in a variety of contexts.

Keywords: green hydrogen; levelized cost of hydrogen (LCOH); photovoltaic with storage; lithium-ion batteries; electrolyzer efficiency; optimal system design (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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