Power-to-gas plants and their role in the electricity balancing market

This LAP is concerned with the status of, and legal coverage for, Power to Gas systems operating to provide ancillary services and specifically for demand side load balancing services


Balancing and Ancillary Services Markets. Balancing refers to the situation after markets have closed (gate closure) in which a TSO acts to ensure that demand is equal to supply, in and near real time.
An important aspect of balancing is the approach to procuring ancillary services.
Is it a barrier?
Type of Barrier
Economic barriers
Assessment Severity
This LAP is crucial for identification of the possibilities for power–to–gas plants(electrolysers) connected to the public electricity grid to generate additional revenues if tapping the control power markets for ancillary grid services.


Question 1 Are electrolysers able to participate in the 3 ancillary services? If yes, please specify.
In principle, the electrolyser 1 MW, 10 MW respectively, meets the requirements of all types of control reserve and may provide all reserve functions, both negative (absorbing power from the grid) and positive (lowering power demand by decreasing production while being operational). In order to provide ancillary grid services an electrolyser has to undergo a technical prequalification (e.g. by meeting capacity and operational requirements). The prequalification is carried out exclusively by the TSO, in whose control area the electrolyser is connected, regardless of the voltage level grid.
Describe the comparable technology and its relevance with regard to hydrogen
Demand response providers for balancing services

National legislation:

EU Legislation:

  • Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency
    This Directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20 % headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date.

    It lays down rules designed to remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy and provides for the establishment of indicative national energy efficiency targets for 2020.
  • Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing
    This Regulation lays down a detailed guideline on electricity balancing including the establishment of common principles for the procurement and the settlement of frequency containment reserves, frequency restoration reserves and replacement reserves and a common methodology for the activation of frequency restoration reserves and replacement reserves.