Stakeholder Outcomes under Renewable-Grid Bottlenecks and Green-Hydrogen Industry

Decarbonization trajectories across modern power systems increasingly encounter structural transmission constraints, as rapid additions of variable renewable generation outpace physical network expansions [1]. The divergence between localized renewable supply surges and centralized load absorption leads to substantial energy curtailment, elevating systemic operational inefficiencies and destabilizing project revenue streams [2]. Integrating electrolytic hydrogen infrastructure into constrained network nodes presents an operational pathway to monetize surplus renewable electricity while stabilizing network parameters [3].

However, the distribution of economic and operational dividends remains contested across diverse market participants [4]. Transmission system operators require active congestion management and frequency stability, while independent power producers face revenue uncertainty due to curtailment risks and variable wholesale clearing prices [5]. Concurrently, green-hydrogen developers must navigate capital intensity, electrolyzer capacity factors, and transport logistics across grid-tied and dedicated off-grid architectures [6]. The resulting interplay determines the economic viability of green fuels and the allocation of systemic costs across public and commercial entities [7].

This paper examines how transmission bottlenecks shape stakeholder outcomes within the evolving green-hydrogen sector through a systematic comparative analysis of grid-integrated and off-grid production paradigms [1], [8]. By synthesizing recent techno-economic literature, power system stability assessments, and cross-sectoral operational frameworks, the study maps the economic trade-offs, network benefits, and regulatory frictions governing system operators, generation developers, and industrial off-takers. The resulting synthesis provides a consolidated foundation for designing balanced market mechanisms that mitigate network congestions without shifting stranded-asset risks onto downstream energy consumers.