After two decades of relatively flat consumption, energy demand in the United States grew by 2 percent in 2024, a trend that is expected to continue in 2025 and 2026. While new renewable generation is being built to meet this demand, energy storage resources, both hourly and long duration energy storage, will be necessary to maintain a balanced grid.
Clean Energy Group has published a report with new analysis evaluating the feasibility of hydrogen power plants as long-duration energy storage resources, based on cost competitiveness as well as equity and environmental impacts.
The analysis finds that due to the operational characteristics of hydrogen power plants, as well as the inefficiencies of hydrogen production and use, hydrogen is not cost competitive with other longer duration storage resources, although it may have some advantages for seasonal storage. However, it is unlikely that most regions will need seasonal storage resources in the next decade, making the current buildout of hydrogen-capable power plants premature, risking continued reliance on fossil fuels and burdening ratepayers with unnecessary expenses. In addition, hydrogen production and use carry several environmental, economic, and public health risks that other promising storage technologies do not.
Clean Energy Group
www.cleanegroup.org
