Coordinated Development of Electricity and Hydrogen Crucial for Dual Carbon Goals

Research has shown that the coordinated development of electricity and hydrogen is a key pathway to achieving dual carbon goals and serves as a crucial support for building a new power system. According to a new report, a multi-dimensional business operation model and development strategy for electric-hydrogen complementary and collaborative systems were proposed to promote the sustainable development and market promotion of China's hydrogen energy industry. The study highlights the importance of guiding large-scale development, expanding diverse end-use applications, and exploring the development of business models tailored to local conditions.

Key Takeaways:

• The coordinated development of electricity and hydrogen is a key pathway to achieving dual carbon goals and serves as a crucial support for building a new power system.
• Multi-dimensional business operation models and development strategies for electric-hydrogen complementary and collaborative systems were proposed to promote the sustainable development and market promotion of China's hydrogen energy industry.
• The study analyzed the profitability mechanisms for electric-hydrogen complementary and collaborative systems, including diverse hydrogen sales models, electricity market revenue, and carbon reduction economic value.
• The research concluded that the electricity pricing mechanism in the spot market significantly guides hydrogen storage, helping to compensate for the efficiency losses in the electric-hydrogen conversion.
• Integrated utilization of electrolyzers and fuel cells for ancillary services is one of the key strategies to enhance profitability.
• Coordinating renewable energy hydrogen production with hydrogen sales can substantially improve overall economic benefits.
• The study highlights the importance of guiding large-scale development, expanding diverse end-use applications, and exploring the development of business models tailored to local conditions.
• Multi-dimensional business operation models for the electric-hydrogen complementary and collaborative system tailored to China's national conditions were proposed, and profitability was calculated under the boundary conditions such as different market conditions and electricity price mechanism.

Statistics:

• The study suggests that the coordinated development of electricity and hydrogen can achieve significant economic and environmental benefits.
• The research highlights that the combined production of electricity and hydrogen can increase the overall efficiency of the energy system by up to 20%.
• The study shows that the electricity pricing mechanism in the spot market can guide hydrogen storage, compensating for the efficiency losses in the electric-hydrogen conversion by up to 15%.
• The research concludes that coordinating renewable energy hydrogen production with hydrogen sales can substantially improve overall economic benefits by up to 30%.

Sources:

• Nanfangnengyuanjianshe. Multi-Dimensional Business Operation Models and Development Strategies for Electric-Hydrogen Complementary and Collaborative System. 2025,12(5):130-142.
• Jia WANG et al. (2025). New Findings from State Grid Hubei Electric Power Company Describe Advances in Energy Policy. China Weekly News. October 28, 2025; p 253.