Skip to main content
European Commission logo
Clean energy for EU islands
  • 30 September 2025

New reports explore hydrogen demand and energy storage options for clean energy islands

gotland

The Clean energy for EU islands secretariat has published two new technical reports that provide fresh insights into the role of hydrogen and energy storage in supporting the clean energy transition of Europe’s islands. Focusing on the Swedish island of Gotland as a case study, the reports offer analysis and recommendations that are highly relevant to other islands across the EU facing similar challenges of limited grid connections, renewable energy curtailment, and the urgent need for flexibility infrastructure.

The first report, Assessment of Potential Local Hydrogen Demand, evaluates prospective off-takers of hydrogen on Gotland beyond the maritime sector to strengthen the business case for local hydrogen deployment. It provides a preliminary estimate of annual demand by sector, highlights barriers and opportunities, and offers a SWOT analysis to guide future engagement. By identifying potential users and market drivers, the study supports strategic decision-making and aims to stimulate investment in hydrogen applications, particularly in contexts where renewable generation exceeds grid capacity and risks being curtailed.

The second report, Assessment of Energy Storage for Local Grid Decarbonisation and Stability, explores the feasibility of deploying energy storage systems on Gotland to enhance grid stability, reduce renewable energy curtailment, and accelerate decarbonisation. The study considers both seawater pumped hydro storage and battery-based solutions. While a potential site for small-scale pumped hydro storage was identified, the island’s limited topography restricts viable capacity, and high capital expenditure remains a barrier. The report also presents a storage sizing exercise, estimating how much battery capacity would be required to absorb surplus generation under different scenarios, including potential expansion of Gotland’s HVDC interconnection to the mainland.

Together, the two publications underscore the importance of integrating sector coupling and storage technologies into island energy planning. They demonstrate how hydrogen and storage solutions can unlock greater use of renewable resources, strengthen system resilience, and reduce reliance on costly grid upgrades. Although the research focuses on Gotland, the methodologies and insights apply to other EU islands striving to decarbonise their local energy systems.

Both reports — Assessment of Potential Local Hydrogen Demand and Assessment of Energy Storage for Local Grid Decarbonisation and Stability — are now available for download on the Clean Energy for EU Islands

You can find both reports here Assessment of potential local hydrogen demand | Clean energy for EU islands and Assessment of Energy Storage for local grid decarbonisation and stability | Clean energy for EU islands

Country