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Sector coupling: speeding up the switch to low-carbon energy

Sector coupling: speeding up the switch to low-carbon energy

 

Sector coupling makes a difference to how energy is generated and used, whether it is applied on a relatively small scale in a setting such as a residential apartment block, or on an industrial scale by a major multinational company. What really matters is how sector coupling makes the most of low-carbon energy. 

But what is sector coupling? In a nutshell, it involves integrating the main energy consuming sectors - transport, buildings and industry - with the sectors that generate power, while at the same time exploiting every opportunity to make the most of zero-carbon energy generated from renewable sources. Solar photovoltaics (PV) and wind turbines are good examples of the type of energy generation that sector coupling seeks to promote.

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Sector Coupling involves physical and commercial energy interaction between the power sector and the buildings, transport and industry sectors. 
Share of energy use from electricity by 2050 in a country like the U.K. or Germany
50-60
%
Share of energy use from electricity by 2050 in a country like the U.K. or Germany
Potential emission reduction below 1990 levels by 2050 across transport, buildings and industry due to sector coupling
71
%
Potential emission reduction below 1990 levels by 2050 across transport, buildings and industry due to sector coupling
Potential emission reduction below 1990 levels by 2050 across transport, buildings, industry and power due to sector coupling
83
%
Potential emission reduction below 1990 levels by 2050 across transport, buildings, industry and power due to sector coupling

BloombergNEF's incisive report on what sector coupling can achieve

Sector coupling will help Europe to progress towards becoming the first climate-neutral continent by 2050. This report, authored by BloombergNEF in partnership with Eaton and Statkraft, explores how the transport, buildings and industrial sectors could be electrified by plugging them directly into the power grid or switching to green hydrogen produced from renewables, a process known as indirect electrification.

The report focuses on the impact of sector coupling on the electricity system and market design and highlights how policymakers and regulators could address some of the biggest challenges.

The findings of this study clearly demonstrate the need for the foundational work that remains to be done in order to accelerate the energy transition and halt the accumulation of greenhouse gases in the atmosphere, touching all aspects of the energy ecosystem.

Cyrille Brisson, VP Sales, Service and Marketing, Eaton EMEA

Watch a series of video interviews with Eaton leaders on the key findings and take-aways from a new report by BNEF, Sector Coupling in Europe: Powering Decarbonization.

    Sector coupling opportunities for building and fleet owners

    By coupling buildings with transport and making the most of self-generated renewable power from sources such as solar photovoltaic panels, property owners and managers can reduce both their carbon footprint and energy costs. Sector coupling also enables them to develop revenue streams from the energy they produce and the electric vehicle charging services they offer. To gain the full benefits of sector coupling in this way, they need to retain their self-generated power in an energy storage system for use when they need it, and when power costs are most expensive. Our new whitepaper explains how this can be done.
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    Understand how to benefit from sector coupling

    Owners and managers of buildings and vehicle fleets have much to contribute to sector coupling because by charging EV fleets with self-generated power they can help balance the grid. Read our whitepaper to find out more.

     

    How sector coupling changes supply side dynamics

    Sector coupling will increase demand for electricity, and change the work done by the District Network Operators (DNOs) that own and operate power lines and infrastructure, and the energy retailers who sell power to customers. 

    Sector coupling means that the core competencies of utilities in the future will be focused predominantly on metering, switching and controlling power, collecting and processing huge quantities of data, process automation and facilitating transactions.

    • DNOs will evolve into Distribution System Operators (DSOs) that procure and orchestrate flexibility. Energy retailers will provide new services such as assisting customers with power purchase agreements, flexible tariff management, implementing technologies such as bi-directional EV charging infrastructure and providing 'energy-as-a-service' offerings.
    • Energy retailers will be in a position to create value by making their customers’ flexibility assets avalable to help balance the grid. These assets may include solar PV generation and thier EV fleets, for example. They will be able to support DSOs by providing data and information on demand-side dynamics and local asset condition. 
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    Learn about the challenges and opportunities of the energy transition for utilities

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