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
Operational barriers
Assessment Severity
No significant impact


Question 1 Are electrolysers able to participate in the 3 ancillary services? If yes, please specify.
(1) In Latvia, a transmission system operator shall ensure the balancing. A market participant has the right to become a balancing service provider by entering into a balancing contract with a transmission system operator. (2) Each market participant shall be liable for the fact that the quantity of electricity sold by it in each trading interval complies with the quantity of electricity entered into the system and the quantity of electricity supplied, and the quantity of electricity purchased complies with the quantity of electricity received from the system. (3) A market participant and electricity exchange participant shall enter into a contract with a transmission system operator or balancing service provider regarding the receipt of a balancing service. (4) The rights and obligations of a market participant, balancing service provider and transmission system operator shall be determined in the Network Code. Network Code determines that: The TSO shall agree with the elextricity producers or the electricity market participants whose tender, after assessment of the TSO, is technically and commercially most advantageous, the provision of the nexessary capacity reserve for the prevention of technological disturbances and balancing of the elextricity system.
Describe the comparable technology and its relevance with regard to hydrogen
Renewables – wind and solar

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.