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The European Union's 2020 climate and energy package (known as "20-20-20" targets) requests, among other key objectives, 40% of the electricity production in Greece to be supplied from Renewable Energy Sources by 2020. The main barriers for reaching this target is the intermittency of renewable energy sources combined with the penetration limits in the local electrical grids and the high seasonal demand fluctuations. In this context, the introduction of energy storage systems, comprises one of the main solutions for coping with this situation. One of the most promising technologies for storing the excess energy, that would be otherwise lost, is the production and storage of hydrogen through water electrolysis. Hydrogen can be used for supporting the electricity grid during periods of high demand but also as transportation fuel for H2-based automobiles (e.g. fuel cell vehicles). For this purpose, a simulation algorithm has been developed, able to assess the specifications of the optimum sizing of hydrogen production storage systems. For the application of the algorithm, the area of the Aegean Sea has been selected, owed to the considerable renewable energy sources curtailments recorded in the various non-interconnected islands in the region. More specifically, the developed algorithm is applied to an autonomous electricity network of 9 islands, located at the SE area of the Aegean Sea and known as the "Kos-Kalymnos" electricity system. The results obtained designate the optimum size of the hydrogen-based configuration, aiming to maximize the recovery of otherwise curtailed renewable energy production.

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