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The energy transition to wind and solar opens up opportunities for green hydrogen as wind and solar generation tend to bring electricity prices down to very low levels. We evaluate whether green hydrogen can integrate well with wind and solar PVs to improve the South Australian electricity grid. Green hydrogen can use membrane electrolysis plants during periods of surplus renewable energy. This hydrogen can then be electrified or used in industry. The green hydrogen system was analysed to understand the financial viability and technical impact of integrating green hydrogen. We also used system engineering techniques to understand the system holistically, including the technical, social, environmental, and economic impacts. The results show opportunities for the system to provide seasonal storage, grid firming, and reliability services. Financially, it would need changes to electricity rules to be viable, so at present, it would not be viable without subsidy. [ABSTRACT FROM AUTHOR]

Australia has committed to reducing its greenhouse gas emissions in a manner consistent with limiting anthropogenic climate change to no more than 2 degrees Celsius. One of the ways in which this commitment is being realised is through a shift towards variable renewable energy (VRE) within Australia's National Electricity Market (NEM). Substituting existing dispatchable thermal plant with VRE requires consideration of long-term energy resource adequacy given the unpredictability of solar and wind resources. While pumped hydro and battery storage are key technologies for addressing short-term mismatches between resource availability and demand, they may be unable to cost effectively address 'energy droughts'. In this article, we present a time sequential solver model of the NEM and an optimal firming technology plant mix to allow the system to be supplied by 100% VRE. Our conclusion is that some form of fuel-based technology (most likely hydrogen) will probably be required. This has important implications for Australian energy policy. [ABSTRACT FROM AUTHOR]