Table of Contents

Institutions & Markets

Sector coupling

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Sector coupling connects electricity, heat, transport, and gas to enable cost-efficient decarbonisation and grid flexibility, but the term covers two distinct strategies that are often conflated.

Why this matters

[To be drafted]

Shared definitions

Sector coupling involves the increased integration of energy end-use and supply sectors with one another. It can contribute to the cost-efficient decarbonisation of the energy system by valuing synergy potentials and interlinkages between different parts of the energy system.1)

The concept originated in Germany, where it referred primarily to the electrification of end-use sectors such as heating and transport, with the aim of increasing the share of renewable energy in those sectors and providing balancing services to the power sector. More recently the concept has broadened to include supply-side integration between the electricity and gas sectors.2)

Two complementary strategies can be distinguished:3)

Sector coupling: end-use sector coupling and cross-vector integration

Figure 1. Sector coupling: end-use sector coupling and cross-vector integration.
Source: Van Nuffel et al. (2018), European Parliament ITRE.4)

ENTSO-E distinguishes between sector coupling and sector integration more precisely: sector coupling refers specifically to the close linking of the electricity and gas sectors, equivalent to power-to-gas, while sector integration refers to the use of final energy in end-use sectors including transport and heating.5) Both strategies require hardware and an adequate legal and regulatory framework.

Perspectives

Actors and stakeholders

Technologies and infrastructure

Institutional structures

Distinctions and overlaps

Sector coupling vs. sector integration
In ENTSO-E's framing, sector coupling refers specifically to linking electricity and gas markets and infrastructure (power-to-gas), while sector integration refers to the use of electricity or gas in end-use sectors such as transport or heating. In the broader European Parliament framing, both are subsets of sector coupling. The distinction is not universally applied but matters when specifying the technical or regulatory scope of a measure.6)

Flexibility · Energy logistics · Energy storage · Markets · Regulation · Digitalisation

Topic notes

Content notes from source material:

1)
Van Nuffel, L., Dedecca, J. G., Smit, T., & Rademaekers, K. (2018). Sector coupling: How can it be enhanced in the EU to foster grid stability and decarbonise? European Parliament, Committee on Industry, Research and Energy (ITRE). https://www.europarl.europa.eu/RegData/etudes/STUD/2018/626091/IPOL_STU(2018)626091_EN.pdf
2) , 3) , 4)
Van Nuffel, L., Dedecca, J. G., Smit, T., & Rademaekers, K. (2018). Sector coupling: How can it be enhanced in the EU to foster grid stability and decarbonise? European Parliament, ITRE. https://www.europarl.europa.eu/RegData/etudes/STUD/2018/626091/IPOL_STU(2018)626091_EN.pdf
5)
ENTSO-E. (2019). Sector coupling and sector integration: Position paper. European Network of Transmission System Operators for Electricity. https://eepublicdownloads.entsoe.eu/clean-documents/Publications/Position%20papers%20and%20reports/Sector_coupling_integration_PositionPaper.pdf