Compression is one of the most critical issues related to almost all hydrogen storage methods and its subsequent usage. Hydrogen compression is only part of the so-called "Hydrogen Value Chain", but it is crucial for overcoming the entry barriers for a "Hydrogen Economy". It is widely accepted that there is a strong need for significant improvements in efficiency, durability and reliability of hydrogen compressors as well as for cost reductions, The basic scope of this work is to present the current developments on Metal Hydride Hydrogen Compressors (MH2C) and try to evaluate from both technical and economical point of view the potential integration of MH2C in real power systems comprising Renewable Energy Sources and Hydrogen technologies. In this work, certain target markets for the MH2 compressor are identified, while all technical and financial issues of its integration in complete power systems have been assessed. Through a preliminary analysis of potential markets for the MH2 Compressor, it is shown that there are three major niche markets: (i) Chemical industry, by utilisation of waste industrial and/or available renewable heat; (ii) Hydrogen filling stations for vehicles and (iii) RES & H2 autonomous power systems for remote communities (e.g. off-grid islands). A specific case study (the Greek island of Milos) is analysed in detail (using the HOMER software tool) with the aim of increasing RES penetration. A RES & hydrogen storage power supply system is proposed and examined from an economic, environmental and social perspective drawing the relevant conclusions. (C) 2018 Elsevier Ltd. All rights reserved.