The integration of various energy sources into the electricity grid represents a transformative shift
toward a more sustainable energy system. By connecting the electricity, heating, cooling, and
transportation sectors, a process known as sector coupling, the grid becomes more flexible and capable of managing fluctuating demand and supply. This integration enhances efficiency, reduces carbon emissions, and strengthens energy security. However, this also introduces complexities in grid management, requiring new infrastructure, advanced technologies, and regulatory adjustments to maintain grid stability and reliability. As the share of renewable energy in the electricity sector continues to grow, other sectors, such as transport, buildings, and industry, remain heavily dependent on fossil fuels. The decarbonization of these sectors can either happen through electrification or by shifting from fossil fuels to renewable gases like hydrogen or renewable liquid fuels. The conversion between electricity and these gases can further increase storage capacity and add flexibility to the energy system.
Highlights
Sector coupling is crucial for reaching the EU climate targets, including the reduction of greenhouse gas emissions by 55% by 2030. According to the specific goals set by the European Green Deal and
REPowerEU, by 2030, 30 million electric vehicles (EVs) should be on the road while 40% of residential
heating should be powered by heat pumps. Additionally, district heating and cooling networks are expected to account for 25% of the EU’s energy demand by 2030, necessitating robust grid management to handle the increasing and diversified energy load.
Opportunities for DSOs
- Sector integration enhances grid efficiency, stability, and energy security by diversifying energy sources and optimising the utilization of renewables.
- The incorporation of EVs, heat pumps, and district heating systems provides the grid with essential flexibility, facilitating the balance between supply and demand. Furthermore, this integration fosters innovation and creates new business models, contributing to economic growth within the energy sector.
Challenges for DSOs
- The integration of multiple sectors into the electricity grid presents challenges, including the potential emergence of grid congestion and the complexities of managing decentralized and variable energy sources.
- Significant investments in grid modernization are essential, particularly in digital technologies that enable real-time monitoring and dynamic network management.
- Additionally, regulatory frameworks must be updated to support this transition and ensure grid stability and reliability under these new conditions.
E.DSO Consideration
- Distribution System Operators (DSOs) must invest in advanced grid technologies to effectively manage the increased complexity of energy flows resulting from sector coupling. Their application should serve, among others, the development of smart grids, the enhancement of real-time monitoring capabilities, and the incorporation of decentralised energy sources.
- While the necessary technologies are available, integrating all these sources complicates their management.
- DSOs must collaborate closely with regulators to ensure that supportive policies are in place, facilitating the successful integration of EVs, heat pumps, and district heating systems into the grid.
Potential use cases
- Smart grid management and real-time monitoring: Use artificial intelligence (AI)and real-time data to balance supply and demand, detect issues promptly, prevent blackouts, and reduce energy losses.
- Vehicle-to-Grid (V2G) and smart EV charging: Use EV batteries as grid storage during off-peak hours and coordinate charging schedules to prevent grid overload and enhance flexibility.
- Heat pump and building load optimisation: Optimise heat pumps and building-level energy demand to avoid grid congestion during peak times, using predictive data to manage electrification impacts.
- Renewable energy integration and forecasting: Enable large-scale integration of solar and wind farms while improving grid planning through accurate generation forecasting.
- Energy storage and flexibility solutions: Deploy batteries strategically to enhance resilience, and use Power-to-Gas, Power-to-X, and seasonal gas storage to convert surplus electricity into hydrogen or synthetic fuels, contributing to grid flexibility and seasonal balancing.
- Promoting Electrification: Encourage the adoption of electric technologies to reduce carbon emissions and improve energy efficiency across sectors.
- Cross-sector optimisation: Harness synergies across energy sectors by using technologies like heat pumps that respond to electricity market signals to efficiently supply district heating networks with storage. Additionally, incorporate insights into the projected growth of district heating and gas networks to adapt long-term electricity investment plans, ensuring aligned infrastructure development and optimised resource allocation.
Ongoing projects
- ORES’s FlexmyHeat project combines heat pumps with storage tools to stabilize the power system in Belgium. In response to increasing electricity demand and renewable generation, this project assesses how these technologies can offer flexibility to the grid.
- Stedin is implementing several projects on sector coupling:
- BEHeaT, combining intelligent buildings, heat storage, heat networks and electricity grids.
- DEMOSES, developing a coupling methodology for heat, electricity, and green gas distribution grids.
- ROBUST, testing sector coupling at the city and regional levels, including the deployment of largescale bi-directional V2G.
- Enedis is participating in the European project ACCU (Interreg Europe programme). A demonstrator is foreseen in the North of France, in the city of Fourmies, focusing on energy communities and the synergies between power and heat networks.
Last update: 14 February 2025