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Fuel Cells (FC) can help in contributing to environmental pressures by maximizing the use of renewables in the energy production and using hydrogen produced with no CO2 emission from Renewable Energy Systems (RES). FCs also contributes to energy security concerns by allowing a wider choice of fuels and by using it in combined heat and power applications (CHP). Thus using fuel cells will help in complying with the Scottish Government requirements. However, wide use of fuel cells in power applications cannot be reached before developing a prototype model for the simulation and performance evaluation of the fuel cell generation system to ensure its optimum performance in both stand-alone and grid-connected environments.