Assessing the Role of Hydrogen in California’s Decarbonizing Electric System

RAND Corporation

Recipient

Santa Monica, CA

Recipient Location

24th

Senate District

51st

Assembly District

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$229,351

Amount Spent

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Active

Project Status

Project Update

This project was completed in July 2025. All of the project deliverables were completed, including an analysis of the technology landscape, performance and cost modeling, relevant policy analysis, and recommendations for the CEC and other stakeholders. The final report is under review by the CEC and will be published in Q1 2026.

The Issue

A wide range of decarbonization technologies are required for California to meet the climate goals of SB 100. Hydrogen will likely be one of the key technologies involved, but the relative role of hydrogen technologies in the electric sector transition is still unclear. This problem has not been thoroughly addressed because the climate goals are new, the technologies are nascent, and the physics of the technologies are subtle and complex. As a result, their anticipated contribution to SB 100 goals remains unknown. This question must be addressed now because decarbonization of the electricity sector is well underway and the role of hydrogen must be determined to inform how hydrogen technologies are integrated into the ongoing transition.

Project Innovation

The project will assess the potential role of hydrogen production from renewable electricity and end-use conversion technologies for electric sector applications to decarbonize California’s electric system. The research will examine current technologies, potential innovations, cost changes, and use cost and physical modeling to determine hydrogen's role and make least-cost policy recommendations. The findings, knowledge, and recommendations will be shared with the CEC and the public, providing rationale for future hydrogen technology investments.

Project Benefits

California aims to achieve the goal of decarbonizing its electric sector, which will require planning, innovation, and investment. This research aims to increase the understanding of hydrogen technologies and their role in California's energy transition plan and provide an objective analysis to guide future hydrogen technology investments.

Lower Costs

Affordability

This research explores the potential for hydrogen technologies to lower the cost of energy storage and serve load in the California electric system.

Environmental & Public Health

Environmental Sustainability

This research assesses the environmental costs and benefits from larger-scale hydrogen infrastructure deployment for electric sector applications.

Greater Reliability

Reliability

This research also assesses the role that hydrogen can play in enabling a more reliable and resilient electric system in California.

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