Sector Coupling in Europe: Powering Decarbonisation

A new major report published by BloombergNEF

‘Sector coupling’ – i.e., the electrification of more areas of the economy – would enable countries in Europe to make substantial progress toward 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 in Europe could be electrified by plugging them directly into the power grid or switching to green hydrogen produced from renewables (indirect electrification). Its particular focus is 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.  
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

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. While essential reform to grid regulation has started to progress across Europe, we have far to go if we are to replicate best practices and further encourage innovation. This is particularly apparent when it comes to market structures that incentivize the flexibility needed to address the challenge of renewable intermittency.

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

Videos

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.