Hydrogen based electric systems can be used as a substitute for large battery banks in distribution systems, especially in applications where there is a big concern for environmental safety. Recent advances in hydrogen technologies allow the conversion back and forth between electric energy and hydrogen; increasing efficiency and reducing costs. A bidirectional Multilevel Current Source Inverter (MCSI) is used to interconnect an electrolyzer and a fuel cell within a low voltage distribution system. The energy storage and the MCSI allow smoothing the power variations which appear in electrical systems with a considerable proportion of wind and/or solar generation.