Optimization of Green Hydrogen Integration in Microgrid for Sustainable Energy Transition

Nowshin Ritu

Remote island communities face an urgent need to transition to renewable energy sources, as they often rely on costly and environmentally detrimental diesel generators. While solar and wind resources offer cleaner alternatives, their variable output poses considerable challenges to maintaining consistent energy reliability. This study investigates the potential of green hydrogen-produced through water electrolysis-as a long-term energy storage solution to address these reliability issues in remote areas. This study analyses the techno-economic and environmental performance of a hybrid renewable microgrid integrated with green hydrogen, using Saint Martin’s Island in Bangladesh as a case study. Six microgrid configurations were simulated in HOMER Pro using site-specific resource data and estimated load profiles and analysed over a 25-year project lifetime. Ranging from a conventional diesel-only system to advanced hybrid setups integrating solar PV, wind turbines, battery storage, and a hydrogen system. The study demonstrates that a hybrid PV-Wind-Battery-Diesel-Hydrogen system can achieve a 99.5% renewable energy fraction, nearly eliminate annual CO₂-e emissions, and deliver approximately 175 hours of long-duration storage. Despite high initial costs, the system ensures reliable power with minimal diesel use. A Levelized Cost of Energy (LCOE) of $0.675/kW, 16.2% Internal Rate of Return (IRR), and a 7.7-year discounted payback confirm its long-term economic viability. Sensitivity analysis identifies capital costs of components and average load as the key factors affecting financial feasibility. The thesis concludes by presenting a preliminary strategic transition pathway and policy roadmap, demonstrating that green hydrogen storage offers remote islands a viable and economically feasible solution for establishing fully renewable microgrids. This solution is designed to support energy security, economic stability, and decarbonization, and it can be applied in comparable contexts. The study highlights the importance of phased financing, effective water management, and developing local labour to achieve a smooth transition.

Optimization of Green Hydrogen Integration in Microgrid for Sustainable Energy Transition

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