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Reducing Power System Costs in LMICs through Grid-Connected Green Hydrogen: Evidence from Kenya
Xi Xi1,2,3, Boniface Kinyanjui4, Daniel M Kammen1,2,5,3
1Department of Civil and Systems Engineering, Johns Hopkins University, Baltimore, Maryland 21205, United States.
Environmental Science & Technology
|March 6, 2026
Summary
Grid-connected green hydrogen production in Kenya can lower electricity costs and support decarbonization. Coordinated planning is key to maximizing economic benefits and ensuring equitable development for domestic use.
Area of Science:
- Energy Systems Analysis
- Green Hydrogen Economy
- Sustainable Development in LMICs
Background:
- Green hydrogen offers decarbonization potential for low- and middle-income countries (LMICs).
- High electricity costs and export focus raise concerns about economic viability and equity of green hydrogen projects.
- Kenya's renewable energy resources present an opportunity for green hydrogen production.
Purpose of the Study:
- To evaluate the role and impact of grid-connected hydrogen electrolyzers in Kenya.
- To assess the economic viability and equity implications of green hydrogen deployment.
- To determine optimal strategies for integrating hydrogen production into the power system.
Main Methods:
- Utilized a multinodal capacity expansion model with county-level spatial resolution.
- Simulated scenarios incorporating grid-connected hydrogen electrolyzers as flexible demand.
- Analyzed impacts on renewable curtailment, wind integration, electricity costs, and hydrogen competitiveness.
Main Results:
- Electrolyzer deployment reduced the levelized cost of electricity by over 17%.
- Achieved cumulative system cost savings exceeding $135 million by 2050.
- Demonstrated cost-competitiveness of domestically produced green hydrogen compared to standalone projects.
- Identified concentrated infrastructure investment patterns, underscoring the need for equity-focused planning.
Conclusions:
- Grid-integrated green hydrogen can significantly lower electricity costs and support decarbonization in Kenya.
- Coordinated planning of electrolyzers, wind power, and transmission infrastructure is crucial for cost reduction and low-carbon hydrogen goals.
- Embedding hydrogen production within power system planning can yield broader domestic economic benefits and support green certification.
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