Hydrogen Energy Applications in New Power Systems: Insights from China Electric Power Construction’s Hebei Institute

China Electric Power Construction Hebei Institute: Applications of Hydrogen Energy in New Power Systems

On April 23, the “2025 Second Green Hydrogen Industry Innovation Development Conference” was grandly held in Nanjing, co-hosted by North Star Power Network and the Beijing Carbon Neutrality Society. During the conference, Liu Wei’an, a member of the Dong Zhou team from China Electric Power Construction Group Hebei Electric Power Survey and Design Institute, presented on the topic of “Applications of Hydrogen Energy in New Power Systems.”

The global energy sector is undergoing a rapid transformation, with a significant increase in the proportion of renewable energy (green electricity) in new power systems. While this represents a positive trend in energy upgrading, the volatility and intermittency of renewable sources pose severe challenges to power systems. In this context, hydrogen energy, with its unique advantages, has emerged as a highly promising energy storage solution, playing a crucial role in constructing new power systems and reducing carbon emissions.

Liu Wei’an pointed out that hydrogen energy exhibits broad application prospects across multiple fields. Notably, hydrogen fuel cells are widely utilized in the transportation sector. In industrial sectors such as chemicals and steel, hydrogen can directly serve as a fuel or reducing agent, replacing traditional energy sources like natural gas and providing new pathways for green development across various industries.

On the policy front, the national government has established a 15-year medium- to long-term plan for the development of the hydrogen industry, clearly defining the critical role of hydrogen energy in the future national energy system. The energy law has been officially promulgated, and national macro-planning continues to guide the industry’s expansion towards hydrogen energy. At the local level, by 2025, 23 provinces will include hydrogen energy in their government work reports. Provinces and cities like Chongqing and Sichuan are developing hydrogen corridors to promote the use of hydrogen in transportation, creating a collaborative development pattern that combines national leadership with local policy support.

The Dong Zhou team has also conducted a comparative analysis of hydrogen production technologies, expressing strong optimism about two specific methods. The first is green hydrogen production technology using renewable energy for water electrolysis, which has achieved an efficiency breakthrough of over 75% and offers certain cost advantages. The PEM (Proton Exchange Membrane) technology is characterized by quick start-up, high current density, and high hydrogen purity, but it is relatively expensive. The second is biological hydrogen production technology, which, although currently low in efficiency and output, is seen as promising due to its wide range of raw materials and environmentally friendly nature.

Hydrogen energy holds multiple strategic values and applications in new power systems. As an efficient energy storage method, it can mitigate the volatility of wind and solar power by facilitating the temporal transfer of excess energy through water electrolysis. Additionally, hydrogen engines and fuel cells can enhance grid resilience through rapid peak-shaving capabilities and distributed deployment. In the transition to a low-carbon economy, the hydrogen-electric coupling model and the construction of zero-carbon parks have already demonstrated significant potential.

Currently, the core challenge limiting the large-scale application of hydrogen energy lies in its technical economics. Key materials for water electrolysis are mostly imported, and storage and transportation technologies have yet to reach a breakthrough. The current cost of green hydrogen is around 20-25 yuan per kilogram, which needs to decrease to below 15 yuan to become competitive. At present, the carbon market in China has limited monetization capabilities. Hydrogen energy can enhance carbon reduction effects, but the financial returns from carbon reduction remain uncertain, necessitating continued efforts to promote the recognition of hydrogen energy’s value in the carbon market.

Furthermore, the construction of hydrogen energy infrastructure requires substantial investment, and the commercial models are still immature, necessitating collaborative efforts between policy guidance and market mechanisms. Liu emphasized the importance of focusing on improving electrolysis efficiency and constructing low-cost storage and transportation systems, achieving domestic production of key materials to reduce hydrogen production costs, and exploring financial and shared economic models for hydrogen energy to attract social capital into the sector, thus addressing industrial bottlenecks through diversified commercial pathways.

According to existing planning data, it is expected that China’s hydrogen storage capacity will surpass 2 GW, with a market size of approximately 30 billion yuan. By 2030, the penetration rate of hydrogen energy in the energy storage sector is anticipated to reach 15%, driving the scale of the industry chain beyond one trillion yuan. The hydrogen energy market holds promising prospects.