With decades of global focus on addressing the climate crisis, the main challenge has become evident: Replace all fossil energy sources with renewable energy. In Denmark, this transition is well underway, and Denmark is renowned for its high share of renewable energy, especially wind, in its energy mix. In 2023, almost 44 percent of Denmark’s actual energy consumption was covered by renewable energy (source: Danish Energy Agency).

As the shift towards renewable energy picks up pace, the  focus on how to build a much more integrated energy system that allows for renewable energy to be efficiently utilised by flowing between energy sectors has intensified accordingly. Essentially, energy production and energy consumption need to be tied together in a much tighter and more intelligent way. The entire energy system must be interconnected in innovative ways, breaking down traditional boundaries between heating, cooling, water, gas, e-fuels and electrical power in the planning and development of the future green energy system.

Fostering new ways of collaboration

Sector coupling involves dismantling traditional silos between different forms of energy, and fostering partnerships and collaborations across sectors and industries both locally, nationally and internationally. In Denmark, there is a long-standing tradition of close collaboration between the public and private sector, and between players of different industries. That collaboration is founded on developing mutually beneficial solutions to a common challenge through knowledge sharing and partnerships.

About the white paper “Sector coupling – Unlocking renewable energy’s full potential”

This white paper presents highlights on sector coupling in a Danish context with a focus on energy. Coupling sectors establish new streams for renewable energy to displace fossil fuels on the path toward carbon neutrality. Using concrete examples of application, it presents an overview of how Denmark works to utilise renewable energy in sectors such as heating, cooling, transport, production industries and farming, while at the same time securing a high degree of energy efficiency and security of supply.

Terms like sector coupling, sector integration, smart energy systems and industrial symbiosis are often used overlappingly to refer to a holistic approach with an interconnected energy system. This white paper uses the term sector coupling and focuses on energy in the scope of resources and application areas:

Energy and utilities resources

• Electricity
• Thermal energy
• Water
• Gas
• Liquid e-fuels

Application areas

• Storage/Power-to-X
• Transport
• Industrial processes
• Buildings
• Agriculture

The concept of sector coupling entails the connection of sectors within and across both perspectives to optimise the future energy system to the highest possible level of reliability, sustainability and carbon neutrality.

Reading guide for the publication “Sector coupling – Unlocking renewable energy’s full potential”

The figure above presents a simplified model of sector coupling with a focus on energy. The primary driver for decarbonising our energy consumption is replacing fossil fuels with green electricity through direct electrification. This is represented by the green line connecting the model’s six application areas: transport, buildings, industrial processes, agriculture, water management and storage/Power-to-X.

In instances where direct electrification is not feasible, energy conversion and flexibility become essential. These processes enable the utilisation of other renewable energy sources, such as biogas, green hydrogen, liquid e-fuels, thermal energy and wastewater, as depicted in the model’s inner circle. These resources replace fossil fuel streams using new approaches, technologies and solutions that generate energy flows of input and output across the six application areas, as shown by the arrows running back and forth.

Digitalisation and comprehensive data exchange between sectors, actors and assets is crucial for smooth energy management. The integrated interaction ensures that consumption and supply are tied closely together, facilitating a balanced and flexible energy system. This concept is illustrated by the green line running between the six application areas and the inner circle, which represents the energy and utility resources.

Throughout the white paper “Sector coupling – Unlocking renewable energy’s full potential” you will see graphical elements representing the application areas and energy and utilities resources mentioned in the different chapters. Use this model for reference to navigate the terms and categories.