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Currently, the cost of electricity for electrolysis of producing hydrogen is about 70−90% of the total cost. Scientists predict that the share of renewable energy in total energy is expected to reach about 70% in 2050, as the cost of wind photovoltaic power generation in China is as low as 0.13¥/(kW•h), and that the use of renewable energy sources, mainly photovoltaic and wind power, of producing hydrogen can effectively reduce the cost of electricity. Meanwhile, with the improvement of technology, the cost of an electrolyzer used in proton exchange membrane hydrogen production technology can be reduced by about 50%, which will reduce the cost of hydrogen production by more than 20%. According to the distribution of electricity resources in each region of China, the project construction of renewable energy power generation and proton exchange membrane hydrogen production can be reasonably carried out. A long-distance hydrogen transmission system can be established to provide guaranty for the establishment and operation of urban hydrogen power stations using a combination of renewable energy and long-distance hydrogen transmission systems. This paper provides a reference for the industrial development and policy direction of hydrogen production by water electrolysis.