A holistic view on sector coupling

Sector coupling (SC) describes the concept of a purposeful connection and interaction of energy sectors to increase the flexibility of supply, demand, and storing. While SC is linked to research on smart energy system and locates itself in the research stream of 100% renewable energy systems, it currently focusses on counteracting challenges of temporal energy balancing induced by the intermittent feed-in of renewable energy sources. As regarding the coupling of grids, SC currently remains within classical energy grids. It does not exploit the coupled sectors’ potential to its full extent and, hence, lacks a holistic view. To include this view, we call on the use of all grids from coupled sectors for spatial energy transportation, resulting in an infrastructural system. By using the different loss structures of coupled grids, we illustrate how a holistic view on SC minimizes transportation losses. We argue that SC should include all grids that transport whichever type of energy (e.g., even transportation or communication grids). Ultimately, we derive and discuss implications relevant for policy makers and research: We illustrate why regulation and market design should be aligned in a way that the resulting incentives within and across the different sectors support climate change goals.