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Accepted for publication in the INTERNATIONAL JOURNAL OF HYDROGEN ENERGY, April 2009. Hydrogen Economy Transition in Ontario-Canada Considering the Electricity Grid Constraints Amirhossein Hajimiragha, Michael Fowler, Claudio Cañizares University of Waterloo, Waterloo, Ontario, Canada Abstract This paper investigates the feasibility of electrolytic hydrogen production for the transport sector during off-peak periods in Ontario. This analysis is based on the existing electricity system infrastructure and its planned future development up to 2025. First, a simplified but realistic zonal based model for Ontario’s electricity transmission network is developed. Then, based on Ontario’s Integrated Power System Plan (IPSP), a zonal pattern of generation capacity procurement in Ontario from 2008 to 2025 is proposed, specifying the total effective generation capacity in each zone that contributes to base-load energy. Finally, an optimization model is developed to find the optimal size of hydrogen production plants to be developed in different zones, as well as optimal hydrogen transportation routes to achieve a feasible hydrogen economy penetration in Ontario up to 2025. The proposed model is shown to be an effective planning tool for electrolysis based hydrogen economy studies. The results of the present study demonstrate that the present and projected electricity grid in Ontario can be optimally exploited for hydrogen production, achieving 1.2 % to 2.8 % levels of hydrogen economy penetration by 2025 without any additional grid or power generation investments beyond those currently planned. Keywords: Hydrogen economy, electricity grid, optimal planning, transportation, Ontario. 1. Glossary of terms CDM: Conservation and Demand Management CHP: Combined Heat and Power FCV: Fuel-Cell Vehicle HHV: Higher Heating V