Electricity generation in NSW is moving away from coal and towards renewable energy. Renewable energy can be intermittent; which can affect the security and reliability of the National Electricity Market (NEM). Similar to batteries and pumped hydro, hydrogen can provide security and reliability to the NEM. Surplus renewable energy can be used to generate hydrogen using electrolysis, which can be stored and used at times where renewable energy output is not able to meet energy demand.

This paper was produced to assist the Legislative Council’s Standing Committee on State Development with its current inquiry into the Development of a hydrogen industry in New South Wales

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