From an environment perspective, the increased penetration of wind and solar generation in power systems is remarkable. However, as the intermittent renewable generation briskly grows, electrical grids are experiencing significant discrepancies between supply and demand as a result of limited system flexibility. This paper investigates the optimal sizing and control of the hydrogen energy storage system for increased utilization of renewable generation. Using a Finnish case study, a mathematical model is presented to investigate the optimal storage capacity in a renewable power system. In addition, the impact of demand response for domestic storage space heating in terms of the optimal sizing of energy storage is discussed. Finally, sensitivity analyses are conducted to observe the impact of a small share of controllable baseload production as well as the oversizing of renewable generation in terms of required hydrogen storage size.