Congestion Management Based on Power-to-Gas – Opportunities and Challenges in European Electricity Markets

In response to the increasing integration of renewable energy and the resultant challenges of grid congestion, this paper explores the techno-economic potential of Power-to-Gas technology in congestion management. As the grid struggles to accommodate fluctuating renewable energy infeeds, Power-to-Gas emerges as a promising solution by converting surplus electricity into synthetic natural gas, thereby leveraging the existing gas infrastructure for energy storage and enhancing grid flexibility. This study, through a comprehensive literature review and a two-stage model analysis, evaluates Power-to-Gas's role in mitigating grid congestion, optimising energy dispatch, and supporting the transition towards a more sustainable and resilient energy system. Our findings underscore Power-to-Gas's capacity to reduce redispatch volumes by 3.4% and associated costs by 1.7%, while simultaneously facilitating a higher penetration of renewable sources into the energy mix. By integrating economic dispatch and ex-post redispatch processes within our model, we demonstrate how Power-to-Gas can serve as a critical tool for system operators in managing grid congestion effectively, thus addressing the urgent need for innovative solutions in the face of increasing renewable energy integration. This research contributes to the ongoing discourse on energy system flexibility, offering insights into Power-to-Gas's potential to enhance the reliability and sustainability of the electricity supply.