Case

Sector Coupling

Challenge

The Danish government has set an ambitious target of reducing greenhouse gas emissions by 70 % by 2030 compared to 1990-levels, but the Paris Agreement has established the need for reduction targets globally. To reach these targets is a huge challenge, but Denmark is moving in the right direction with an ever-increasing share of renewable energy in the energy mix. But due to some days being windier or sunnier than others, the future energy system needs to be able to manage large fluctuations in the energy production. We need to couple the energy end-use and supply sectors with one another to establish a more integrated energy system. The challenge is how to optimize and reuse our energy consumption. There is a significant need for creative thinking in coupling different sectors if we want to reach the reduction targets set, not only for Denmark but also for the rest of the world.

Solution

With sector coupling, we will be able to optimize how we consume energy. In other words, we will be able to move energy between sectors, so we can move forward or delay the consumption of renewable energy. Denmark can lead the way, globally, by developing a competitive system with robustness, flexibility and efficiency that would be impossible without the integration of separate sectors.

Danish Energy and Danish Industry who together forge the Corporate Climate Alliance have together with 24 companies presented their recommendations for better sector coupling to the ministry of climate-, energy-, and utilities. This has supplied 7 concrete recommendations for the Danish government.

  1. Apply a new cooperation model for the implementation of sector coupling
  2. Establish a national program for sector coupling
  3. Create the digital foundation across sectors
  4. Expand energy markets that couple sectors.
  5. Modernize regulation and reorganize energy taxation
  6. Implement large scale value chain projects
  7. Set new goals for the promotion of export in the energy- and climate area

Results

If followed, the recommendations will not only reduce the greenhouse gas emissions, but also, through cooperation and enhanced competitive conditions for renewable energy and sector coupling, make industry able to supply more creative and large-scale solutions. Denmark is already being looked upon by the world for green solutions for the future, also in sector coupling, with the largest European plant for biogas and CO2-production, flexible charging of electric vehicles and intelligent control of district heating heat pumps. It is hoped that the recommendations put forward by the industry will provide the optimal framework for similar projects in the future.

 

About author

The Danish Energy Association is a commercial and professional organisation for Danish energy companies.

Primary contact
Birgitte Hougaard

Case location

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