Green hydrogen production is essential to meeting the conference of the parties’ (COP) decarbonization goals; however, this method of producing hydrogen is not as cost-effective as hydrogen production from fossil fuels. This study analyses an off-grid photovoltaic energy system designed to feed a proton-exchange membrane water electrolyzer for hydrogen production to evaluate the optimal electrolyzer size. The system has been analyzed in Baghdad, the capital of Iraq, using experimental meteorological data. The 12 kW_p photovoltaic array is positioned at the optimal annual tilt angle for the selected site. The temperature effect on photovoltaic modules is taken into consideration. Several electrolyzers with capacities in the range of 2–14 kW were investigated to assess the efficiency and effectiveness of the system. The simulation process was conducted using MATLAB and considering the project life span from 2021 to 2035. The results indicate that various potentially cost-competitive alternatives exist for systems with market combinations resembling renewable hydrogen wholesale. It has been found that the annual energy generated by the analyzed photovoltaic system is 18,892 kWh at 4313 operating hours, and the obtained hydrogen production cost ranges from USD 5.39/kg to USD 3.23/kg. The optimal electrolyzer capacity matches a 12 kW_p PV system equal to 8 kW, producing 37.5 kg/year/kW_p of hydrogen for USD 3.23/kg.

This comparative study examines the potential for green hydrogen production in Europe and the Middle East, leveraging 3MWp solar and wind power plants. Experimental weather data from 2022 inform the selection of two representative cities, namely Krakow, Poland (Europe), and Diyala, Iraq (Middle East). These cities are chosen as industrial–residential zones, representing the respective regions’ characteristics. The research optimizes an alkaline water electrolyzer capacity in juxtaposition with the aforementioned power plants to maximize the green hydrogen output. Economic and environmental factors integral to green hydrogen production are assessed to identify the region offering the most advantageous conditions. The analysis reveals that the Middle East holds superior potential for green hydrogen production compared to Europe, attributed to a higher prevalence of solar and wind resources, coupled with reduced land and labor costs. Hydrogen production costs in Europe are found to range between USD 9.88 and USD 14.31 per kilogram, in contrast to the Middle East, where costs span from USD 6.54 to USD 12.66 per kilogram. Consequently, the Middle East emerges as a more feasible region for green hydrogen production, with the potential to curtail emissions, enhance air quality, and bolster energy security. The research findings highlight the advantages of the Middle East industrial–residential zone ‘Diyala’ and Europe industrial–residential zone ‘Krakow’ in terms of their potential for green hydrogen production.