The diffusion of smart energy systems at the local scale will lead to the implementation of innovative design, plans and applications mainly involving integrated energy infrastructures and distribution systems. In this framework, hydrogen will have the chance to play a major role but its penetration rate still represents a considerable uncertainty and needs to be investigated with special attention to show the real feasibility of a hydrogen economy advent. The paper presents the results obtained analysing a set of scenarios applied to a comprehensive TIMES-based bottom-up energy model developed to describe and assess the energy systems of the single European countries and of macroareas of the rest of the world in an integrated approach. The modelling tool considers the hydrogen supply chain since its production stage (together with its storage and distribution) and evaluates minimising the total system cost and over a mid-long time horizon the penetration of the hydrogen-based end-use technologies. The analysis shows that the residential and, above all, the transport sector may see a considerable diffusion of technologies supplied with hydrogen and especially for urban application, pushed by the upcoming stricter environmental constraints to the energy sector. (C) 2016 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.