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Emerging technologies of the 21st Century introduced bi-directional flows between a big number of uncontrollable and unpredictable generators together with a need for energy storage (ES) capable of solving instability issues. With the aim of developing new control methodologies, Skoltech developed a Smart Grid laboratory that includes a variety of energy generators, and storage systems. The capabilities of the grid were expanded with a metal hydride (MH) ES and 1 kW fuel cell. MH ES performs at the near ambient temperatures and relatively low pressure, it has adjustable properties, satisfactory gravimetric H 2 density, and a simple thermal management. However, existing technologies require an external heat source, which cannot serve the purpose of autonomous microgrid applications. The aim of this research was to develop and test an air heated metal hydride energy storage system that utilizes the internal waste heat of the system. Based on low power MH ES system experiments [1] and waste heat investigations [2], an air heated system with 1 m3 H 2 MH reactor was developed and tested. The experiments were performed in the system that also includes 1 kW fuel cell and an electrolyzer. Obtained results show higher efficiency rate of the system due to waste heat utilization from the air-cooled polymer electrolyte membrane (PEM) FC, ensure mobility for autonomous applications, and open the opportunity for further research in the field of power system control. • 1 kWh hydrogen energy storage prototype was successfully developed and tested. • A novel concept of the fuel cell output hot air utilization is proved. • The internal waste heat of the system replaced an external heating agent. • Air heated metal hydride storage ensures the autonomy of the system. • A prototype was created for the supply systems for the Far East settlements in Russia. [ABSTRACT FROM AUTHOR]