The geographic dispersion of renewable energy installations often leads to challenges in integrating hydrogen production facilities with existing energy grids. Notably, the current lack of a robust hydrogen market framework escalates operational risks and discourages investment from private and international stakeholders. Moreover, China’s focus on solar and wind energy—key inputs for green hydrogen—necessitates strategic investment in grid infrastructure to accommodate fluctuations in renewable power supply. Without such adjustments, overcapacity issues could arise, potentially undermining the economic benefits of transitioning to hydrogen-based systems. A data-backed analysis indicates that integrating high levels of renewable energy into the national grid requires up to…
