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.
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.
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.
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.
New economic data and perspectives on what the transition to a zero carbon energy system means for utilities, how we are helping our customers to adapt, and what this means for your business.