Technology brief: The role of renewable hydrogen in the power sector

Southeast Asia’s energy transition is unfolding against the backdrop of rapidly rising energy demand, shaped by population growth, urbanisation and industrialisation. Policymakers across the region are looking at a range of emerging technologies to support this shift, and hydrogen has gained particular attention for its potential to lower emissions, enable deeper decarbonization and enhance energy security. Several governments are developing hydrogen strategies and considering its use in the power sector, often through co-firing hydrogen and ammonia in existing coal and gas plants.

This policy brief examines the outlook for hydrogen-based power generation in Southeast Asia, from co-firing to dedicated 100 percent hydrogen or ammonia plants. It finds that renewable hydrogen could play a valuable role in providing seasonal storage and meeting peak demand, when electricity is scarce and most valuable. At the same time, it notes that using hydrogen or ammonia in baseload operations tends to deliver only limited emission reductions at relatively high cost, raising questions about its efficiency compared with other options.

The brief situates hydrogen within the broader set of policy choices available to Southeast Asian governments. By assessing hydrogen’s role alongside other clean technologies, it supports policymakers in designing energy transition strategies that are both cost-effective and aligned with long-term development goals.