Abstract

techno-economic analysis is conducted on integrating PEM electrolyzers and solar power plants, including a Concentrated Solar Power (CSP) and photovoltaic (PV) plant in northern Chile. The methodological approach is based on production analysis through four alternatives: PV and PEM (Case 1), CSP and PEM (Case 2), a hybrid case of CSP, PV, and PEM (Case 3), and the same hybrid case but with a higher capacity PEM plant (Case 4). SAM software is used to create solar plant models, while Python is used to model the PEM electrolysis plant and perform system integration. The economic evaluation aims to calculate the levelized cost of electricity (LCOE) and the levelized cost of hydrogen (LCOH). Results yield a minimum LCOH of 5,76 USD/kg H2 and a maximum of 6,63 USD/kg H2 for the current scenario (2024), while for the future scenario (2030), values range between 2,86 and 4,26 USD/kg H2. The configuration that achieved the lowest LCOE and LCOH was Case 1. In all evaluated cases, green hydrogen production costs exceed 2 USD/kg H2, both in the current and future scenarios. Therefore, green hydrogen is not economically competitive with gray hydrogen under these conditions. However, as electricity prices and electrolyzer investment costs decrease, and efficiency improves, green hydrogen could become competitive. These results provide valuable insights for decision-making regarding solar hydrogen production policies.