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FSR Sector Coupling Platform

The idea of “sector coupling” was recently proposed by the European Commission in the context of the Madrid Forum.

The concept of “sector coupling” builds on the need for greater integration between the electricity and gas sectors – by optimising the existing synergies in the generation, transport, and distribution of electricity and gas – with the ultimate scope to build a decarbonized and hybrid EU energy system.

The Florence School of Regulation aims to facilitate and extend the debate on sector coupling and its challenges by exploring new ideas, innovative projects and technologies which could facilitate the coupling of the electricity and gas sectors – as well as the regulatory implications that the changes will entail.

WHAT IS SECTOR COUPLING?

The EU has committed itself to achieve a zero-carbon economy by 2050. In order to meet the decarbonisation targets, electrification in all sectors is due to be the key development. However, natural gas is still a fundamental pillar of the EU energy sector, as it provides the flexibility and predictability needed in energy generation, which cannot currently be provided by renewable electricity. The transition to a zero-carbon energy sector is therefore meant to imply, along with a progressive electrification, a shift towards a more and more decarbonised gas and a closer interaction between the two. This “sector coupling” clearly entails massive deployment of new technologies, new economic rationales and likely regulatory changes.

Presentation on Sector Coupling by EU Commission (PDF)