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The article describes the H2RES model for optimisation of integration of hydrogen usage with intermittent renewable energy sources (RES) in island energy systems, on Porto Santo, the example of an isolated island in Madeira archipelago. It shows that it is possible to increase the penetration of renewable energy sources by introducing a hydrogen storage component, albeit at a relatively high cost. It compares peak shaving case based on storing excess wind with one based on storing excess electricity from a combination of solar PV panels and wind turbines. It shows that significant solar component significantly reduces necessary storage and slightly reduces electrolyser component.