Simulation of a solar-based small-scale green hydrogen production unit in Iran: A techno-economic-feasibility analysis

Based on the global efforts to reduce fossil fuel dependence and its environmental concerns, green hydrogen has been considered a promising pathway towards sustainable energy transition. Iran is considered a promising location for green hydrogen production due to its considerable solar energy potential. While global interest in green hydrogen continues to grow, studies that explore the techno-economic feasibility of small-scale solar-based green hydrogen systems tailored to Iran’s diverse climatic conditions are still relatively limited. This study aims to assess the technical and economic feasibility of small-scale green hydrogen production based on solar energy (photovoltaics) in six cities of Iran, including Esfahan, Kerman, Kermanshah, Shiraz, Tehran, and Zahedan, by examining whether such systems can be financially viable despite their relatively high unit costs. The study employs TRNSYS for dynamic simulation of the hydrogen production system and RETScreen for economic analysis. The results indicate that the system has an annual energy production capacity ranging from 831.52 to 1062.22 MWh across the studied locations. The system's hydrogen production rate was between 16,800 and 21,114 kg/year. Based on the results, the lowest levelized cost of hydrogen (LCOH) was recorded in Shiraz at $6.43/kg H₂, while Tehran experienced the highest value ($8.81/kg H₂). Among the evaluated cities, Shiraz demonstrated the most favorable financial performance, with an internal rate of return (IRR) of 18.5% and a payback period of 8 years. These findings can be useful for policymakers in Iran and the MENA region in investment planning related to the clean energy transition.

Abstract licence: CC BY-NC-ND

59 more references, whose wording the paper’s licence keeps private.

A person counts once a day per paper. We keep no cookie and no address: a reader is a hash that changes every day. Any month under five reads shows no number.