  Hydrogen will be a central cross-sectoral energy carrier in the
decarbonization of the European energy system. This paper investigates how a
large-scale deployment of green hydrogen production affects the investments in
transmission and generation towards 2060, analyzes the North Sea area with the
main offshore wind projects, and assesses the development of an offshore energy
hub. Results indicate that the hydrogen deployment has a tremendous impact on
the grid development in Europe and in the North Sea. Findings indicate that
total power generation capacity increases around 50%. The offshore energy hub
acts mainly as a power transmission asset, leads to a reduction in total
generation capacity, and is central to unlock the offshore wind potential in
the North Sea. The effect of hydrogen deployment on power prices is
multifaceted. In regions where power prices have typically been lower than
elsewhere in Europe, it is observed that hydrogen increases the power price
considerably. However, as hydrogen flexibility relieves stress in high-demand
periods for the grid, power prices decrease in average for some countries. This
suggests that while the deployment of green hydrogen will lead to a significant
increase in power demand, power prices will not necessarily experience a large
increase.
