Preparing Australian electricity systems for large-scale hydrogen production

Using electrolysis to produce hydrogen from water on a commercial scale has the potential to have a significant impact on Australia’s electricity systems, according to a report developed by GHD Advisory and ACIL Allen for the Victorian Department of Environment, Land, Water and Planning.

Developed to support the National Hydrogen Strategy, the report assesses the potential role of hydrogen in Australia’s power systems and whether the electricity regulatory frameworks enable large-scale hydrogen production.

“Electrolysers can respond quickly to changes in generation availability. One of the key findings of the report is that if appropriate incentives are in place, the hydrogen industry could help Australia maintain a secure and reliable power system by matching electricity consumption to variable renewable generation,” said Lizzie O’Brien, GHD Advisory’s Senior Advisor.

“In addition to the hydrogen industry, the report is of interest to electricity market participants, regulators, grid owners, network businesses and consumers.”
The report also found that hydrogen production could lead to further integration between different industry sectors as hydrogen can be produced from excess renewable energy, stored for a long time and readily transported.

“The scale-up of hydrogen production in Australia may introduce new opportunities for investors that amplify the way our electricity, transport and gas sectors interact,” the report said.

GHD is working with clients on a vast range of hydrogen-related projects across Australia and globally. The company also provided a detailed response to Australia’s National Hydrogen Strategy Issues Papers.

To read more about GHD’s hydrogen experience, visit: www.ghd.com/hydrogen