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Germany can slash the costs of its energy transition by deploying green hydrogen predominantly in the north and battery storage in the south, by Leibniz University Hannover (LUH) and the Institute for Solar Â鶹ÎÞÂë°æ Research in Hamelin (ISFH) said.

The researchers modelled an optimised energy system to reduce costs and minimise renewable power waste. Fluctuations in wind and solar output often lead to power surpluses or shortages. The report recommends installing electrolysers in northern Germany to convert wind power into hydrogen, while southern regions focus on battery storage for solar energy.

By 2050, around 35 percent of renewable electricity will initially need to be stored or transformed into hydrogen, said lead author Alexander Mahner in a statement.  "If we don't do this to a sufficient extent, the overall costs of the energy transition could increase by up to 60 billion euros because we need more imports," he added. 

Delays in hydrogen and storage infrastructure could put Germany's climate targets at risk, the report warned.

Total battery storage capacity in Germany has grown 150 percent in the past two years to approximately 20 gigawatt hours (GWh), according to research published in June. Green hydrogen is also seen as a key technology for cleaning up polluting industries such as steel.