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- Herausgeber: Wiley-VCH
- Kategorie: Wissenschaft und neue Technologien
- Sprache: Englisch
Introducing a framework for obtaining and maintaining renewable energy security at the local community level
Local energy communities are a framework for assembling and coordinating major stakeholders, individual, corporate, and institutional, in the pursuit of long-term renewable energy and carbon-free projects in a given area. They are aimed at community benefits rather than profit, and have become an invaluable tool in the fight to reimagine the global energy grid, one community at a time. With climate change making this fight ever more urgent, integrated local energy communities (ILECs) that enhance the previous concept through a multi-carrier systems’ approach have never been a more important social force.
Integrated Local Energy Communities offers a framework for designing, planning, and operating communities from end to end. Incorporating regulatory and policy issues, the mechanics of local multi-carrier energy systems, social aspects and more, it provides viable solutions to one of the most urgent energy challenges of our time. The result is an indispensable contribution to a potentially transformative process.
Integrated Local Energy Communities readers will also find:
- Comprehensive coverage of all types of energy conversion technologies and processes
- Analysis of the entire value chain, from concepts to planning and operation
- Discussion of all key factors for integrating the ILEC energy paradigm
Integrated Local Energy Communities is ideal for energy engineers, electrical engineers, mechanical engineers, engineering scientists working in consultancy and industry, as well as the libraries that serve them.
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Seitenzahl: 859
Veröffentlichungsjahr: 2024
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Preface
1 Introduction: The Need for Sector Coupling and the Energy Transition Goals
1.1 Introduction
1.2 Opportunities for Sector Coupling to Contribute to Decarbonization
1.3 European Energy Legislation and Initiatives Supporting Sector Coupling
1.4 Main Barriers to Implementation
1.5 The Integrated Local Energy Community Concept to Foster Sector Coupling at the Local Level Through End-Users Engagement
References
2 Current Status of Multi-carrier Energy Systems in Europe with Main Limitations and Shortcomings to the Optimal Use of Local Energy Resources
2.1 Introduction
2.2 Methodology
2.3 The Scoping Study: Road Maps and the Overall Pan-European Priorities
2.4 Review of Sector Coupling Technologies for Integrated Local Energy Communities
2.5 Review of Limitations and Barriers for the Optimal Use of the Local Energy Resources
2.6 Conclusions and Lessons Learned
Acknowledgment
References
3 The Concept of Integrated Local Energy Communities: Key Features and Enabling Technologies
3.1 Introduction
3.2 Key Features of ILECs
3.3 Enabling Technologies
3.4 Summary of Main Barriers to the Use of Enabling Technologies in the ILEC
Acknowledgments
References
Notes
4 Actors, Business Models, and Key Issues for the Implementation of Integrated Local Energy Communities
4.1 Introduction
4.2 Actors’ Roles and Interactions Within ILECs
4.3 Key Issues for the Implementation of ILECs
4.4 Business Models for ILECs
4.5 Conclusion and Lessons Learned on Barriers, Benefits, and Policy Implications for ILECs Implementation
Acknowledgments
References
5 Comprehensive Analysis and Future Outlook of Planning and Operation Approaches for Multicarrier Energy Systems Under the Integrated Local Energy Community Concept
5.1 Introduction
5.2 Optimal Planning of Multicarrier Energy Systems
5.3 Operational Planning of Multicarrier Energy Systems for Day-Ahead Optimization and Decision-Making Under Uncertainties
5.4 Optimal Operation of Multicarrier Energy Systems in Real Time Under Multiobjective Approaches Considering Demand-Response Programs and Market Interaction
5.5 Data Architectures, Control Technologies, and the Scaling of Energy Systems
5.6 Holistic Approach in Planning and Operating an ILEC
5.7 Conclusion
List of Abbreviations
References
6 Analytical Framework for Coordinated Planning and Operation of Multicarrier Energy Systems
6.1 Introduction
6.2 Modeling of Energy Technologies in MCES
6.3 The Optimal Design Problem for MCES
6.4 Optimal Day-Ahead Scheduling of MCES Under Uncertainties and by Considering DR Programs
6.5 Optimal Real-Time Operation of MCES
6.6 Analysis of Commercial Tools for the Optimal Design and Operation of MCES
6.7 Conclusions and Lessons Learned
References
7 Integrated Flexibility Solutions for Effective Congestion Management in Distribution Grids
7.1 Introduction
7.2 Congestion Management in Distribution Systems
7.3 Integrated Flexibility in ILECs
7.4 Instruments for Flexibility Activation for Congestion Management
7.5 Challenges and Outlook
Nomenclature
References
8 Peer-to-Peer Energy Trading Approaches: Maximizing the Active Participation of the Prosumers in the Multi-carrier Energy Communities
8.1 Introduction
8.2 Background and P2P Concept
8.3 P2P Methods and Logical Architecture
8.4 Literature Review
8.5 P2P Approach in the eNeuron Project
8.6 Conclusion
Acknowledgment
References
9 Integration of Multiple Energy Communities: Transaction Prices, Reactive Power Control, and Ancillary Services
9.1 Introduction
9.2 Multiple Energy Communities
9.3 Provision of Reactive Power Compensation Services
9.4 Electromobility Integration
9.5 Conclusion and Key Learnings
Acknowledgments
References
10 Validation of Energy Hub Solutions Through Simulation and Testing in a Lab Environment and Real World
10.1 Introduction
10.2 Energy Hub and Micro Energy Hub Architecture
10.3 EH and mEH Validation Through Simulation and Testing in Lab Environment
10.4 EH and mEH Validation Through Simulation and Testing in Real World
10.5 EH and mEH: An Architecture for Renewable Energy Communities
10.6 Conclusions and Lessons Learned
Acknowledgments
References
11 Energy Communities as an Alternative Way of Organizing the Energy System in Europe: Key Societal Aspects
11.1 Introduction
11.2 A Sociotechnical Approach
11.3 Changing Energy System
11.4 Energy Communities as New Actors
11.5 Technology Facilitating or Hindering Energy Communities?
11.6 Regulations and Markets as Key Institutional Structures
11.7 How It Looks in Practice
11.8 Conclusions
References
Note
12 Guidelines and Recommendations for Optimal Implementation of Integrated Local Energy Communities
12.1 Introduction
12.2 Main Challenges of Integrated Local Energy Communities Implementation at the European Level
12.3 Guidelines and Recommendations for Optimal Implementation of ILECs
12.4 Conclusion
Acknowledgment
References
13 Conclusions and Key Findings on the Integrated Local Energy Community Concepts and Related Applications
Index
End User License Agreement
List of Tables
Chapter 1
Table 1.1 Methodological progress needed to implement sector coupling at var...
Chapter 2
Table 2.1 Energy storage segmentation.
Table 2.2 Overview of sector coupling technology and infrastructure lists fo...
Table 2.3 Main characteristics of the connecting technologies at the prosume...
Table 2.4 Main characteristics of the connecting technologies at the communi...
Chapter 3
Table 3.1 Types and characteristics of energy conversion technologies.
Table 3.2 Characteristics of thermal energy storage.
Table 3.3 Characteristics of H
2
storage.
Table 3.4 Characteristics of electrical energy storage.
Table 3.5 Characteristics of electric vehicle charging stations.
Table 3.6 Types and characteristics of photovoltaic technologies.
Table 3.7 Characteristics of data management technologies.
Table 3.8 Characteristics of control and management technologies.
Table 3.9 Characteristics of technologies for analytics.
Table 3.10 Characteristics of IoT.
Table 3.11 Characteristics of communication technologies.
Table 3.12 Characteristics of computing technologies.
Table 3.13 Characteristics of cybersecurity.
Table 3.14 Characteristics of blockchain.
Chapter 4
Table 4.1 Main interests for the
actors in the distributed system
in the con...
Table 4.2 Main interests for
operators and utilities
in the context of ILECs...
Table 4.3 Main interests for
framework setters
in the context of ILECs.
Table 4.4 Main interests for
supporters and suppliers
in the context of ILEC...
Table 4.5 Main interactions among the actors in the context of ILECs.
Chapter 5
Table 5.1 Main features of the most significant works analyzed in the litera...
Table 5.2 Main features of the most significant works analyzed in the litera...
Table 5.3 Features of stochastic, robust, and chance-constrained optimizatio...
Table 5.4 Multicarrier energy systems’ approach to demand-response programs....
Table 5.5 Benefits of system monitoring in multicarrier energy systems.
Table 5.6 Benefits of system controllability in multicarrier energy systems....
Table 5.7 Challenges for extended controllability and visibility over multic...
Table 5.8 Key considerations for data architectures in multicarrier energy s...
Table 5.9 Inputs and outputs involved in the planning phase of an ILEC.
Table 5.10 Inputs and outputs involved in the operational analysis phase of ...
Table 5.11 Inputs and outputs involved in the real-time operation of the pee...
Chapter 6
Table 6.1 Technologies candidates for the optimal planning of the ILEC with ...
Table 6.2 Optimal configuration of the ILEC.
Table 6.3 Operating cost of the microgrid.
Table 6.4 A comparison for commercial tools for energy planning of MCES.
Chapter 7
Table 7.1 Key characteristics of the transmission and distribution system.
Table 7.2 Technical data of EVs in the case study.
Table 7.3 Adjusted example of a GOPACS market message based on a market mess...
Chapter 8
Table 8.1 Literature review of P2P energy architecture.
Table 8.2 Literature review of P2P energy trading interaction with the whole...
Table 8.3 Literature review of ancillary services provision in the framework...
Table 8.4 Literature review of P2P energy trading, including power network c...
Chapter 10
Table 10.1 mEH technologies.
Table 10.2 EH technologies.
Table 10.3 Technologies involved in UnivPM EH.
Table 10.4 Optimal technologies capacity from design optimization.
List of Illustrations
Chapter 1
Figure 1.1 Representation of sector coupling concept.
Figure 1.2 The transition from the present to the Integrated Systems approac...
Figure 1.3 Overview of an integrated grid through sector coupling.
Figure 1.4 Graphical representation of an integrated local energy community....
Chapter 3
Figure 3.1 Overview of definitions for energy communities.
Figure 3.2 Organizational structure of reviewed ECs – in total and in a regi...
Figure 3.3 Involved stakeholders (total on the left in the figure, divided b...
Figure 3.4 Motivations for establishment of the ECs (total on the left in th...
Figure 3.5 Energy carriers identified in reviewed ECs (total on the left in ...
Figure 3.6 Energy carriers according to geographic areas.
Figure 3.7 Energy technologies installed in reviewed ECs (total on the left ...
Figure 3.8 Energy technologies according to geographic areas.
Figure 3.9 Power patterns and indication of the area corresponding to the se...
Figure 3.10 ICTs considered in the study.
Chapter 4
Figure 4.1 Main key actors grouping based on stakeholder characterization.
Figure 4.2 Main key issues affecting ILECs deployment.
Figure 4.3 Spatial and noise key issues.
Figure 4.4 Emission mitigation from traditional system to ILEC.
Figure 4.5 Overview of business model canvas.
Chapter 5
Figure 5.1 Overview of the planning and operation processes in an ILEC.
Figure 5.2 Representation of the exact modeling/exact optimization dilemma i...
Figure 5.3 Graphical representation of the Pareto front in the form of a tra...
Figure 5.4 Graphical representation of a two-stage scenario tree.
Figure 5.5 Overview of multiple dimensions of data and data architectures in...
Figure 5.6 Overview of data exchanges for monitoring, optimization, and cont...
Figure 5.7 Interaction of an ILEC with the external entities.
Chapter 6
Figure 6.1 Scheme of the optimization framework for MCES for (a) day-ahead s...
Figure 6.2 Energy technologies modeled in MCES.
Figure 6.3 Pareto frontier obtained with the multiobjective optimization mod...
Figure 6.4 Load profile in the presence and absence of the demand-response p...
Figure 6.5 Hourly dispatch of the microgrid in the presence of the demand-re...
Figure 6.6 Natural gas supply and changes in linepack in the presence and ab...
Figure 6.7 Hourly dispatch of the microgrid considering uncertainty.
Figure 6.8 MCES network used in the case study.
Figure 6.9 BESS, PV, and WT input profiles for load flow analysis.
Figure 6.10 EV and GSHP active power input profiles for load flow analysis....
Figure 6.11 Transformer apparent power profile and limit extracted by load f...
Figure 6.12 Transformer apparent power expected profile and limit following ...
Chapter 7
Figure 7.1 Schematic overview of the electrical power system.
Figure 7.2 Cost index of PV and lithium-ion batteries.
Figure 7.3 Number of electric smart meters installed in the United States fr...
Figure 7.4 A map of the Netherlands showing regions in which there is limite...
Figure 7.5 Schematic example of grid reconfiguration as a measure for cable ...
Figure 7.6 Attributes characterizing flexibility.
Figure 7.7 Overview of an ILEC interacting with EVs in both G2V and V2G mode...
Figure 7.8 Bidding strategies related to flexibility collected from EVs into...
Figure 7.9 Optimized strategies for EVs management during the parking period...
Figure 7.10 Technology schematic of multi-carrier home.
Figure 7.11 Results of the case study.
Figure 7.12 An illustration of the bandwidth tariff model.
Figure 7.13 Overview of the agents and interactions in the simulation case....
Figure 7.14 The effect of different network tariff costs for the dynamic and...
Chapter 8
Figure 8.1 Classification of P2P market designs and implementation technique...
Figure 8.2 P2P market designs: (a) centralized, (b) distributed, and (c) dec...
Figure 8.3 eNeuron toolbox conceptual scheme.
Figure 8.4 eNeuron P2P market architecture.
Chapter 9
Figure 9.1 (a) Network layout for test cases. (b) Users randomly assigned to...
Figure 9.2 (a) Users randomly assigned to different communities, with certai...
Figure 9.3 (a) Variation of total procurement costs for communities and the ...
Figure 9.4 Operating region that complies with the minimum power factor.
Figure 9.5 Layout of the network of the first test case.
Figure 9.6 Profiles of the cumulative value of the community reactive power ...
Figure 9.7 Profiles of the cumulative value of the reactive powers of the co...
Chapter 10
Figure 10.1 mEH and EH concept.
Figure 10.2 Technologies and networks involved in UnivPM mEH 1.
Figure 10.3 UnivPM Montedago mEH: site map (a) and user dashboard (b).
Figure 10.4 Results of simulation of three EV-charging stations.
Figure 10.5 SOC and flexibility potential of the virtual battery hub.
Figure 10.6 Superstructure of the cryo-polygeneration system.
Figure 10.7 Singapore geo-localization (a) and Nanyang Technological Univers...
Figure 10.8 Weekly electricity w/o AC consumption (a) and cooling (b) demand...
Figure 10.9 Superstructure of the EH proposed for the industrial port area....
Figure 10.10 Geographical position of the Italian demo site (a) Source: Goog...
Figure 10.11 EH architecture for the city of Osimo.
Figure 10.12 EH monitoring platform of the CHP power plant.
Figure 10.13 EH monitoring platform for batteries.
Figure 10.14 mEH monitoring platform for smart building (ASTEA HQ).
Figure 10.15 mEH monitoring platform for local energy community.
Chapter 11
Figure 11.1 Interactions between institutions, actors, and technology. Sourc...
Figure 11.2 Factors hampering or stimulating acceptance-related responses of...
Guide
Cover
Table of Contents
Title Page
Copyright
Preface
Begin Reading
Index
End User License Agreement
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Integrated Local Energy Communities
From Concepts and Enabling Conditions to Optimal Planning and Operation
Edited by Marialaura Di Somma, Christina Papadimitriou, Giorgio Graditi, and Koen Kok
Editors
Marialaura Di Somma
Department of Industrial Engineering
University of Naples Federico II
Piazzale Tecchio, 80
Naples, 80125
Italy
Christina Papadimitriou
Eindhoven University of Technology-TU/e
Groene Loper 19
Eindhoven
5612 AP
The Netherlands
Giorgio Graditi
ENEA
Lungotevere Thaon di Revel 76
Rome, 00196
Italy
Koen Kok
Eindhoven University of Technology-TU/e
Groene Loper 19
Eindhoven
5612 AP
The Netherlands
Cover Image: © Adyna/Getty Images
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Preface
Decarbonization of the energy system requires an integrated approach across all different sectors, such as electricity, heating, cooling, and transportation. Sector coupling, through the integrated use of different energy carriers, both at the supply side (e.g. by converting (surplus) electricity into other forms, such as hydrogen) and at the demand side (e.g. by using residual heat from power generation processes for district heating), is represented as a key for reaching the ambitious climate neutrality by 2050. The main benefit associated to sector coupling is related to the increase of flexibility of the energy system through the coordinated management and operation of different sectors and the exploitation of interplay of multiple energy carriers and related technologies. On the other hand, the ongoing transition from traditional centralized energy systems to decentralized schemes brings new opportunities for distributed energy resources integration and for the evolution of the role of final users from passive consumers to active users through energy communities. Combining sector coupling at the local level with energy communities leads to the innovative concept of integrated local energy communities (ILECs), which represent an effective way of managing available energy resources at local level by also fostering consumer engagement and empowerment. The ILEC concept may refer to a set of energy users deciding to make common choices in terms of satisfying their energy needs, in order to maximize the benefits deriving from this collegial approach, thanks to the implementation of a variety of electricity and thermal technologies and energy storages and the optimized management of energy flows. The aim of this book is to present in a thorough and comprehensive way all the critical aspects that are needed when designing, planning, and operating an ILEC from end to end. This book’s objective and ambition are timely, as the integrated energy system is an important means to achieve the energy transition and minimize dependence on fossil fuels.
To this end, the following key topics are comprehensively discussed throughout the book:
Conceptualization of ILECs with analysis of key features, enabling technologies including ICT, actors, business models and key issues for their implementation, and validation of ILEC solutions through simulation and testing in a lab environment and real-world applications.
Presentation of innovative approaches for the coordinated planning and operation of ILECs, with integrated flexibility identification and employment, and for peer-to-peer (P2P) energy trading.
Analysis of key social aspects related to the reorganization of the energy system according to the energy community paradigm.
Definition of guidelines and recommendations for optimal implementation of ILECs.
The book supports readers in finding innovative solutions and detailed insights for the planning and operation of ILECs while fostering research advances to the state of the art on this topic. The book does this by presenting approaches, methodologies, critical assessments, real-time applications, as well as efficient optimization models and algorithms for MCES and emerging technologies/carriers including hydrogen and electric vehicles. The proposed optimization frameworks are scalable and flexible for adaptation to several real contexts thus representing valid tools to provide support to decision-makers for ILECs planning and operational aspects.
August 2024
Marialaura Di Somma
University of Naples Federico II
Christina Papadimitriou
Eindhoven University of Technology-TU/e
Giorgio Graditi
ENEA
Koen Kok
Eindhoven University of Technology-TU/e
1Introduction: The Need for Sector Coupling and the Energy Transition Goals
Marialaura Di Somma1, Christina Papadimitriou2, Giorgio Graditi1, and Koen Kok2
1Italian National Agency for New Technologies, Energy and Sustainable Economic Development, Department of Energy Technologies and Renewable Sources, Lungotevere Thaon di Revel, 76, 00196, Rome, Italy
2Eindhoven University of Technology, Electrical Engineering Department, Groene Loper 3, 5612 AE, Eindhoven, the Netherlands
1.1 Introduction
1.1.1 The Needs and Challenges of the Current Energy System
The present energy system faces several pressing needs. With a growing demand for energy driven by population growth, industrialization, and improved living standards, there is an urgency to meet it in a sustainable manner. Simultaneously, addressing climate change requires a transition to low-carbon or carbon-neutral energy sources. However, integrating renewable energy sources (RESs) poses challenges due to their converter-based, intermittent, and variable nature. To ensure a reliable and resilient power system, aging infrastructure needs to be upgraded and modernized. Grid resilience must also be enhanced to withstand extreme weather events, cyberattacks, and other disruptions. Furthermore, supporting the electrification of different sectors, e.g. heating, cooling, and transportation, necessitates infrastructure development and adequate grid capacity that is now lacking. To this end, advancements in energy storage technologies are also crucial. Lastly, improving energy efficiency across sectors is vital to reduce overall energy demand and greenhouse gas (GHG) emissions, which requires a combination of technological advancements and policy measures.
Addressing the aforementioned needs is not trivial and numerous challenges are present. Balancing energy supply with the ever-increasing demand is a hard task as it does not only presuppose upgrades in related infrastructure and equipment but also changes on how the operators schedule and manage the grid. Transitioning to low-carbon energy sources while ensuring a reliable and uninterrupted power supply poses a complex task that requires careful planning and investment. Integrating RES into the grid requires addressing the intermittency and variability associated with them, by necessitating innovative solutions for effective integration. Moreover, upgrading and maintaining aging infrastructure presents financial and logistical challenges. Safeguarding the power grid against risks such as extreme weather events and cyberattacks requires robust strategies and investments in cybersecurity measures but also affects the “business as usual” in the operational planning of the operators. Advancing energy storage technologies is crucial for both dealing with the excess renewable energy and providing flexibility for balancing supply and demand. The electrification of various sectors presents several challenges that impact the power system overall. First, to satisfy all types of energy demands resulting from electrification, a significant amount of additional power network capacity is required. This includes accommodating the increased electricity consumption from transportation, buildings, and industry. Second, contingencies in the power system can have far-reaching consequences. Any disruption or failure can lead to power outages, affecting not only the resilience of the power system and of the electrified sectors but also the overall functioning of society. Grid stability and management become crucial factors in ensuring a reliable and resilient power supply in this case. As electrification changes the energy landscape, operators face new challenges in planning and scheduling. They must consider the increased complexity of managing diverse energy sources, grid capacity, and demand patterns to optimize system performance and ensure uninterrupted power supply.
As such, the distribution operators’ planning and scheduling processes need to adapt to the evolving requirements of an electrified system to maintain efficient operations. Promoting energy-efficient practices and technologies across sectors requires changes in consumer behavior as well as supportive policies and incentives.
Finally, creating and implementing effective policies and regulations to facilitate the transition to a sustainable and resilient power system necessitates balancing the interests of different stakeholders and ensuring fair market competition.
Addressing these needs and challenges requires collaborative efforts from governments, energy providers, technology developers, researchers, and consumers to create a sustainable, secure, and affordable energy power system for the future.
1.1.2 What Is Sector Coupling?
Sector coupling originally referred to the electrification of end-use sectors such as heating, cooling, and transport, aiming at increasing the RES share in these sectors, based on the assumption that the electricity supply can be mostly renewable. More recently, the concept has been widened by also including supply-side sector coupling, integrating, for instance, power and gas sectors through power-to-gas (P2G) technologies. It must be highlighted that sector coupling is very similar to that of integrated energy systems, introduced by ETIP SNET Vision 2050 [1–3], defined as a system of systems. Namely, an integrated energy system is an integrated infrastructure for all energy carriers with the electrical system as a backbone, characterized by a high level of integration between all networks of energy carriers, coupling electrical networks with gas networks, heating, and cooling, supported by energy storage and conversion processes. The creation of these systems is based on the coordination of the planning and operation key processes. Within these processes, different types of energy systems across multiple geographical scales are considered to foster reliability and efficiency in energy services while also minimizing negative environmental impacts [4]. The different sectors that can be involved under the concept of sector coupling are represented in Figure 1.1.
Figure 1.1 Representation of sector coupling concept.
Source: Adapted from Van Nuffel et al. [4].
Two different strategies are considered under the concept of sector coupling, namely [5]:
“
End-user” sector coupling
aiming at the electrification of end-use sectors and consisting of energy conversion technologies for electrification of final users’ energy demand, thus enabling flexibility at the final users/prosumers level. An example of these technologies is well represented by
electric vehicle
s (
EV
s) allowing for the electrification of the transport sector.
“Cross-vector” sector coupling
aiming at integrating multiple energy carriers mainly linking electricity and gas sectors through P2G technologies that can be used to produce hydrogen or synthetic methane when excess renewable electricity is available. The produced gas can be then stored for later re-conversion into electricity when renewable electricity supply is insufficient (and hence high electricity prices), by using the so-called power-to-gas-to-power process. On the other hand, electricity can be produced by hydrogen through fuel cells. Another alternative is that the hydrogen produced can be processed into methane or liquid fuel like methanol by making it reacts with CO or CO
2
, the so-called power-to-liquid route. These fuels can be used in transport sectors such as shipping.
The combination of these two strategies allows increasing the flexibility of the energy system, while also supporting RES integration through optimal use strategies. A good example was already provided above, but there is another key example represented by Power-to-Heat technology such as heat pumps. These latter, especially when combined with thermal storage, allow for thermal energy production in periods with excess renewable electricity which can be then stored and re-used in periods with insufficient renewable electricity, thereby representing a cost-effective and efficient solution.
1.2 Opportunities for Sector Coupling to Contribute to Decarbonization
1.2.1 Electrification and Sector Coupling
Electrification in power systems refers to the process of transitioning from traditional, fossil fuel-based energy sources to electrical power for various applications. It involves replacing the direct use of fossil fuels, such as gasoline and natural gas, with electricity as the primary source of energy.
The concept of electrification has gained significant attention in recent years due to its potential to reduce GHG emissions and combat climate change. So, electrification is one of the main drivers of energy transition as it is perceived nowadays and a reliable solution for effective decarbonization at the end user’s side.
Therefore, the electrification scenario can be applied in different sectors. Some examples that can foster electrification are given below:
Transportation:
Electrification of transportation involves transitioning from conventional
internal combustion engine
s (
ICE
s) to EVs. This shift reduces reliance on fossil fuels, decreases air pollution, and offers opportunities for smart charging and integration with the grid, e.g. with
vehicle-to-grid
(
V2G
) services. EVs can expand services to other vectors/domains as well through the so-called V2X services. For example, in a V2Home scenario, EVs can supply power to homes during power outages or peak demand periods.
Residential and commercial buildings:
Electrifying buildings involves replacing fossil fuel-based heating systems, such as oil or natural gas furnaces, with electric heat pumps. An instance is provided in
Figure 1.2
. This approach reduces carbon emissions, improves energy efficiency, and enables demand response programs.
Industrial processes:
Electrification can also be applied to various industrial processes. For example, using electric furnaces instead of traditional fuel-based furnaces in manufacturing reduces emissions and provides more precise temperature control. Electrification can also power other industrial equipment, such as pumps and motors.
Although electrification presents direct benefits such as reduced GHG emissions and air quality improvement, it also presents challenges that are difficult to overcome. The most persistent challenges of electrification are discussed below.
One significant challenge is the need for additional power network capacity to accommodate the increased demand from electrified sectors related to transportation and buildings. This requires substantial investments in grid infrastructure, such as new transmission lines, substations, and distribution networks, to ensure a reliable and resilient electricity supply. Another challenge lies in maintaining stability in the power system, as the integration of RES and the growth of decentralized generation introduce variability and uncertainty. Robust contingency plans and advanced grid management techniques are necessary to handle potential disruptions and ensure system reliability. Grid stability and energy balancing also become crucial considerations, as the intermittent nature of RES and the varying electricity consumption patterns of electrified sectors can impact the balance between electricity supply and demand. Effective energy storage solutions, demand response programs, and grid control mechanisms are required to stabilize the grid and optimize energy utilization. Finally, operators’ planning and scheduling become more complex due to the increased number of distributed energy resources, EVs, and flexible loads. Advanced modeling, forecasting, and optimization tools are essential for operators to efficiently plan, schedule, and manage the operation of the power system while considering factors such as demand fluctuations, charging infrastructure availability, and grid constraints.
Figure 1.2 The transition from the present to the Integrated Systems approach.
Nevertheless, if electrification is enhanced by the sector coupling approach that fosters coordinated management and operation of different sectors, then the challenges identified above can be lifted to a certain extent. In Figure 1.2, the current energy system is compared with the electrified and the integrated energy system paradigm. In specific, an example of electrifying the heat demand is shared. In the present, heat demand is covered by gas-fired boilers, whereas in an electrified future the heat demand is covered by electric heat pumps powered by the electricity network. Through the sector coupling approach, the electrified system is further enhanced. In fact, in such a system, multiple hybrid energy technologies are managed with high synergy to satisfy the multi-energy demand, and services can be provided with the most convenient energy carrier and sector. Moreover, sector coupling allows increasing efficiency in the energy resources use through exploiting synergies coming from interplay of different energy carriers and reduction of RES curtailment. In practice, for instance, in case of excess electricity from RES, it can be converted into gas as hydrogen or synthetic methane through P2G technologies, stored and/or transported by existing gas infrastructures for immediate or later usage, or re-converted again into electricity when renewable electricity supply is insufficient to satisfy the loads.
1.2.2 Enhancing System Stability and Reliability at the Grid Level Through Sector Coupling
As mentioned, sector coupling refers to the seamless integration, coordination, and operation of different energy sectors, leveraging the synergies between them. By combining the power grid with heating/cooling systems, transportation infrastructure, and other sectors, sector coupling offers numerous benefits that contribute to enhanced power system stability and reliability. An integrated grid can be seen in Figure 1.3. Five different carriers (water, electricity, heating, cooling, and gas) are seen integrated through the existence of conversion and hybrid technologies along with storage (thermal, electrical, hydrogen, EVs), allowing the interaction and collaboration of the different carriers when needed.
Figure 1.3 Overview of an integrated grid through sector coupling.
Source: Adapted from Papadimitrou et al. [6].
One of the key advantages of sector coupling is improved grid stability through flexibility and redundancy. The integration of diverse energy sources, such as wind and solar, with complementary technologies like heat pumps or combined heat and power (CHP), enables the balancing of fluctuating supply and demand. This flexibility allows for more efficient management of energy flows and reduces the risk of grid instability, ensuring a reliable power supply even in the presence of intermittent RES.
Additionally, sector coupling enhances power quality and resilience. By integrating energy storage systems into the grid, excess renewable energy can be stored and released when needed to the electricity grid or other carrier as already explained, smoothing out variations and mitigating voltage fluctuations. Furthermore, the coupling of heating, cooling, and power systems enables the utilization of waste heat from power generation, improving overall energy efficiency and reducing reliance on fossil fuels.
Another benefit of sector coupling is its ability to facilitate demand response schemes and load balancing. By integrating intelligent demand response mechanisms, consumers can adjust their energy consumption from technologies residing in different carriers based on grid conditions, helping stabilize the system during peak demand periods. This dynamic interaction between the power system and end-users – that can expand to all carriers – contributes to grid reliability and reduces the need for costly infrastructure upgrades.
Furthermore, the integration of EVs plays a crucial role in sector coupling. EVs can act as mobile energy storage units, offering grid support through V2G technology. During times of high electricity demand, EVs can supply power back to the grid, supporting grid stability and reducing stress on the power system. This bidirectional flow of energy optimizes resource utilization and enhances the reliability of the grid.
However, the successful implementation of sector coupling is not without its challenges. Interoperability and system integration pose significant technical hurdles. Different sectors often use diverse technologies, protocols, and communication systems, requiring seamless coordination and interoperability to ensure efficient energy sharing and control. Standardization efforts and collaboration among stakeholders are crucial to overcome these barriers. Furthermore, the maturity of technologies and the availability of sustainable business models are critical considerations. While some sector coupling technologies, such as heat pumps or CHPs, have matured, others, like P2G, may still be in the early stages of development. Policy and regulatory frameworks also need to adapt to support sector coupling. Clear guidelines and incentives are required to encourage cross-sector integration and investment. Additionally, social acceptance and public engagement are vital to address concerns, educate the public, and promote behavioral changes necessary for successful sector coupling implementation.
In conclusion, by integrating different sectors and leveraging the synergies between them, sector coupling enables flexibility, resilience, and optimized resource utilization. Overcoming technical, regulatory, and social challenges will be crucial to realizing the full potential of sector coupling and building a more stable, reliable, and sustainable power system for the future.
1.2.3 Decarbonization of Heating and Cooling in Building Environment (End-User Level) Through Sector Coupling
Today, energy consumption for heating and cooling in the building environment at the end-user level is responsible for a notable share of GHG in industrialized countries such as Europe. Sector coupling offers a great opportunity for decarbonization of final energy use for heating and cooling purposes through several technologies that can be classified into three categories: (i) technologies making direct use of renewable energy such as solar thermal, geothermal energy, or biomass heating; (ii) technologies making indirect use of renewable energy through electrification, such as electric heat pumps; and (iii) cross-vector integration technologies such as CHP or combined cooling heat and power (CCHP). According to Ref. [4], electric reversible heat pumps represent the best option for decarbonizing this specific sector in European countries, and this is mainly due to the good technical performance of this technology represented by a high coefficient of performance, being then followed by CHP for large applications and district heating. The latter also represents one of the main solutions for the decarbonization of heating demand in the building environment especially when based on RES as biomass heating or solar thermal, while also offering a great potential for the sector coupling strategies presented in Section 1.2. In fact, heat pumps and CHPs can be used with optimized strategies in a complementary manner, with the former operating in periods with low electricity prices and the latter operating in periods with higher electricity prices. However, the lack and inadequacy of existing infrastructures is the main barrier to deployment of this technology as it may require significant investments in new assets.
Another benefit represented by heat pumps and CHPs when coupled with thermal storage is represented by the provision of ancillary services to the electrical network [7]. A practical example is given by heat pumps decreasing the produced thermal energy without compromising the user’s comfort due to building thermal inertia, thereby providing ancillary services. On the other hand, CHPs also can provide flexibility services to the power system, by decoupling the production of electricity and heat through thermal storage depending on the demand [8].
Another promising option to electric heating for decarbonization of this sector is represented by small-scale micro-CHP that allows for the reduction of distribution network costs, by replacing gas-fired plants. This technology can provide firm capacity (assuming it is able to be managed to provide capacity during non-curtailable or non-shiftable peak demand occurrences) while improving conversion efficiency, since the thermal energy produced recovered from electricity generation is not wasted but used to meet local heat demand.
1.3 European Energy Legislation and Initiatives Supporting Sector Coupling
The European energy legislation on energy transition sets forth a visionary path, aiming to foster the transition from traditional fossil fuel-based energy sources to cleaner, renewable alternatives. Toward this, directives at the European Union (EU) level on energy transition were issued some years ago and have been regularly updated ever since. Directives are assumed to be transpositioned at the EU member state level and put in context. Policy measures and initiatives that are supportive are also propelling Europe toward a sustainable and low-carbon future. In the next subsections, the most recent developments that are sector coupling supportive are briefly discussed, whereas Chapter 2 dives deeper into the EU policy.
1.3.1 Directives
Clean Energy for All Europeans Package [9]: Since 2018, the EU adopted the Clean Energy Package, which consists of several directives and regulations aimed at accelerating the clean energy transition. The package includes measures promoting sector coupling by encouraging the integration of renewable energy in various sectors and promoting energy storage and demand response technologies. In specific, the package includes the Renewable Energy Directive (RED II) [10]. The RED II sets binding targets for renewable energy consumption in the EU. It promotes sector coupling by establishing a framework for supporting the use of renewable energy in heating and cooling as well as in the transport sector. It encourages the production and use of advanced biofuels and renewable gases, such as biomethane and hydrogen. The Energy Efficiency Directive (EED) [11] sets out binding energy efficiency targets and measures to promote energy efficiency across different sectors. It encourages the use of energy-efficient technologies and promotes the integration of energy systems through the utilization of waste heat, CHP systems, and district heating and cooling networks. Energy Performance of Buildings Directive (EPBD) [12]: The EPBD focuses on enhancing the energy performance of buildings by promoting energy-efficient renovations and setting minimum energy performance standards for new constructions. The new smart readiness indicator (SRI) for buildings addresses sector coupling through the promotion of flexibility and mobility integration in buildings. In addition, the Energy Market Directive – EMD II[13] aims to create a competitive and integrated electricity market within the EU. It emphasizes the integration of RESs and the improvement of cross-border electricity trading. Energy Infrastructure Regulation (TEN-E) aims to facilitate the development of cross-border energy infrastructure, including electricity and gas projects, to strengthen energy security and support the integration of RESs. The Alternative Fuels Infrastructure Directive (AFID) aims to facilitate the deployment of alternative fuels infrastructure, such as EV charging stations and refueling stations for hydrogen and natural gas.
1.3.2 Policy
EU has set some strategic plans for energy transition that are updated regularly and follow the latest sociopolitical developments. For example, RepowerEU [14] aims to reduce energy dependence from third countries and accelerate energy transition. The measures in the REPowerEU Plan can respond to this ambition, through energy savings, diversification of energy supplies, and accelerated roll-out of renewable energy to replace fossil fuels in homes, industry, and power generation. The diversification of energy supplies points out the need for the sector coupling. This comes on top of the comprehensive strategy of the European Green Deal [15], by outlining the EU’s ambition to achieve climate neutrality by 2050. It encompasses various policy initiatives and legislative proposals to drive the transition to a sustainable, low-carbon economy without leaving anyone behind. Toward this direction, the emissions trading system (EU ETS) is a crucial policy instrument in the EU’s energy transition efforts. It establishes a cap-and-trade system for GHG emissions from industries, incentivizing emission reductions and encouraging the transition to cleaner technologies.
There are also some funding schemes that promote the aforementioned frameworks through developments, innovation, and research. Connecting Europe Facility (CEF) is a funding program that supports the development of trans-European infrastructure, including energy infrastructure. It provides financial assistance for projects that promote sector coupling, such as interconnections between electricity and gas networks, smart grids, and cross-border renewable energy projects. Also, Horizon Europe is the EU’s research and innovation funding program. It supports various projects related to sector coupling, including those focused on energy system integration, smart grids, energy storage, and advanced renewable energy technologies.
1.3.3 Initiatives
There are important initiatives that epitomize the EU’s commitment to mitigating carbon emissions, promoting RES, and fostering energy efficiency across various sectors. In the next paragraph, active initiatives that foster the sector coupling approach are briefly discussed.
European Technology and Innovation Platforms (ETIPs) have been created by the European Commission in the framework of the new Integrated Roadmap Strategic Energy Technology Plan (SET Plan) by bringing together a multitude of stakeholders and experts from the energy sector. The ETIP Smart Networks for Energy Transition (SNET) role is to guide Research, Development & Innovation (RD&I) to support Europe’s energy transition. The visionary idea of system of systems presented in ETIP SNET’s “Vision 2050,” [1] is elaborated on the concept of sector coupling. This approach places the electricity grid as the central backbone of the future energy system. It enables the switch of energy carriers through different conversion technologies, facilitating the transportation of vast amounts of energy across Europe.
The ETIP-SNET’s vision has garnered support from multiple industrial associations representing key stakeholders in the European energy sector. Sector coupling is underscored as a crucial aspect in the RD&I Roadmap 2020–2030 by ENTSO-E [16], emphasizing cross-sector integration. Similarly, WindEurope [17] calls for a regulatory framework that fosters sector coupling, enabling market players to drive the development and operation of assets.
European Technology and Innovation Platform on Renewable Heating and Cooling (RHC-Platform) is also another ETIP that is sector coupling related. The RHC-Platform [18] is an industry-led initiative that brings together stakeholders to promote the use of renewable energy in heating and cooling systems. It supports research, innovation, and policy development in the field of renewable heating and cooling, which is an essential aspect of sector coupling.
The BRIDGE (Building the Research and Innovation for the Development of Green Energy) EU initiative, stemming from the Horizon projects mentioned above, stands as a pioneering force in advancing the concept of sector coupling within the EU. BRIDGE’s mission is to facilitate collaboration among stakeholders, including researchers, industry players, policymakers, and communities, to unlock the full potential of an integrated approach for the energy transition. By fostering cross-sectoral cooperation, BRIDGE empowers the efficient utilization of RES, optimizing their deployment based on real-time demand and supply patterns. As BRIDGE continues to bridge the gaps between sectors and facilitate knowledge exchange, it is propelling the EU toward meeting its energy transition objectives.
Mission Innovation (MI) [19] is a global initiative of 23 countries and the European Commission (on behalf of the EU) on energy transition. Among other things, the activities of this initiative are broken down into missions. Missions bring together dynamic and delivery-focused high-ambition alliances between countries, corporations, investors, and research institutes that set global stretch goals and provide momentum to make sure more innovation happens, more rapidly. Missions focusing on urban transition, clean hydrogen production, and green-powered future are in high complementarity with the sector coupling approach.
In conclusion, European energy legislation, policy, and initiatives have made remarkable strides in promoting sector coupling and driving the energy transition toward a sustainable and low-carbon future. Through a series of directives, the EU has established binding targets and measures to encourage the integration of renewable energy in various sectors, including heating, cooling, and transportation.
1.4 Main Barriers to Implementation
Although the tangible benefits for the energy system are achievable with sector coupling, the concept is still addressed at the theoretical level, being far away from a large-scale implementation and deployment, due to several barriers. In detail, the bottlenecks to sector coupling can be classified into regulatory, economic, technical, technological, social, and market categories as discussed below.
Omissions in legislation/regulation
pose a significant hurdle to implementing sector coupling. Existing regulations may not adequately address the integration of different sectors, such as power, heating, cooling, and transportation. The lack of clear guidelines and frameworks can discourage investments and hinder the development of cross-sector solutions and collaboration between the relevant stakeholders. Addressing this barrier requires policymakers to update and align regulations to accommodate the complex interactions and interdependencies between various sectors.
Economic barriers
are another challenge. Implementing sector coupling often requires substantial upfront investments in infrastructure and technology across sectors. The costs associated with integrating different sectors, optimizing energy flows, and ensuring reliable and efficient management and operation can be high. In the absence of appropriate economic incentives and financial mechanisms, the business case for sector coupling may be weakened, hampering its widespread adoption.
Interoperability barriers
arise from the diverse technologies, systems, and protocols used in different sectors. Achieving seamless integration and coordination between the power grid, heating systems, and transportation infrastructure can be technically challenging. Compatibility issues and data exchange protocols must be addressed to enable efficient energy sharing, control, and management across sectors. Collaboration among stakeholders, standardization efforts, and the development of interoperable solutions are necessary to overcome these barriers.
Technological barriers
mainly arise from the need for further innovation in the various supply, demand, transmission, distribution, and storage technologies to improve the technical feasibility of the most relevant technologies. Moreover, performance aspects such as the efficiency, durability, and degradation of sector coupling technologies still represent a major barrier to their deployment. Most technologies are not fully mature as is the case for hydrogen technologies, and their performance must further improve to be worth deploying and integrating on a large scale. Then, it is worth highlighting that the large-scale deployment of these technologies only makes sense if large amounts of low-cost, carbon-free, surplus electricity are available, which usually implies that technologies harvesting RES are already deployed on a massive scale.
Social barriers
are mainly related to the lack of citizens’ engagement for the deployment of sector coupling technologies at the end-user level and increasing consumers’ awareness about the benefits deriving from such types of implementation is thus necessary. Another non-negligible issue, which is strongly related to the public acceptance of sector coupling solutions, is the lack of economic incentives to invest in local energy-efficient and renewable projects, especially considering that the initial costs of these solutions can be very high. In such a context, priority should be always given to investments that facilitate the uptake of low-carbon technologies and flexibility solutions.
Beyond the bottlenecks to sector coupling identified, another criticality is related to the lack of methodological progress related to the various stages of energy system’s management. In this regard, the foreseen changes are related to the following stages defined in Table 1.1:
Table 1.1 Methodological progress needed to implement sector coupling at various stages of energy system management.
Stage of energy system management
Needed methodological changes to implement sector coupling
System planning
Power system planning needs to be addressed considering the electrification of different energy sectors like heating and transport. The main challenge is related to correctly account for the impacts that a strong electrified scenario may have on peak demands from households to national and continental systems and on energy supply from locally distributed energy resources to large generators, while also considering all direct and indirect effects.
System operation and optimization of energy carriers
The energy system operation needs to properly account for the electrification of different energy sectors, by optimizing and exploiting the potential flexibility coming from new emerging technologies such as EVs, electric pumps, storage, and demand-side management. The aim of this stage is to maximize RES penetration, by reducing curtailment and maximizing the usage of low-carbon energy technologies. Moreover, synergies coming from the interplay of multiple energy carriers should be managed by optimizing the cooperation of multiple energy carriers and the related conversion processes. It must be mentioned that to optimize conversion and storage processes across sectors, a coordinated infrastructure planning of all involved energy systems is required.
Market design
Configuration and mechanisms related to market should be updated to take into account the inclusion of emerging technologies related to sector coupling.
Ownership and business models
One of the key issues related to implementation of sector coupling at a large scale is related to the needed coordination among various actors with often conflicting interests. This type of collaboration needs to be regulated through specific governance rules that need to establish also ownership and operation roles. This requires also sustainable business models that demonstrate the economic viability of the different actors involved.
Source: Adapted from Munster et al. [7].
1.5 The Integrated Local Energy Community Concept to Foster Sector Coupling at the Local Level Through End-Users Engagement
As already mentioned, achieving an integrated grid based on cooperation of multiple energy carriers is a challenging task, and this is the main reason for which a bottom-up approach is preferable to demonstrate the economic and environmental sustainability of sector coupling solutions. This bottom-up approach is based on the assessment of local projects involving RES and multiple energy carriers. These local multi-carrier energy systems can potentially contribute to the EU energy and climate objectives, by helping reverse energy consumption and emission trends. As compared to traditional centralized energy systems, decentralized local energy systems promote an enhanced focus on local security of energy supply.
Combining the sector coupling concept at the local level with one of the energy communities leads to the innovative concept of integrated local energy communities (ILECs), that represent an efficient and sustainable way of managing energy at a local level by fostering consumer engagement and empowerment. The ILEC concept may refer to a set of energy users deciding to make common choices in terms of satisfying their energy needs, in order to maximize the benefits deriving from this collegial approach, thanks to the implementation of various electricity and heat technologies and energy storages and the optimized management of energy flows [20]. Indeed, ILECs are well placed to meet local energy needs, reduce the need for transmission infrastructure, and bring people together to achieve common goals for well-being, thereby fostering consumer engagement. By representing locally and collectively organized energy systems, ILECs are able to effectively integrate different sectors through various local generation of electricity, heating and cooling, flexible demand, storage, and electric mobility. As a result, ILECs are able to fulfill the multi-energy demand of the communities’ users through the optimized operation of local distributed energy resources, by exploiting synergies and cooperation among the various energy carriers. In addition, ILECs may be able not only to efficiently self-provide for the communities’ users but also to provide system services to neighboring systems such as balancing and ancillary services. In addition, exploiting the interplay among different energy sources at the local level may reduce RES curtailment, thereby supporting decarbonization targets. A graphical representation of the ILEC is presented in Figure 1.4. In the ILEC, prosumers can cooperate by sharing all energy carriers, with the aim to satisfy the energy needs of the entire local community. Community generation and community storage systems may be also involved through dedicated community energy management systems. The ILEC promotes local balancing as well as strategic exchanges with the external grids through coordination of exchange. In this way, the community can always have interactions with larger systems, sustaining access to the largest pool of external resources possible, while leaving open the possibility of local resource optimization and provision of services to the external system. The ILEC allows exploiting synergies between different sectors such as electricity, heating, cooling, and transport as well as between different technologies.
The aim of this book is to present in a thorough and comprehensive way all the critical aspects that are needed when designing, planning, and operating an ILEC from end to end and thus contribute to the needed methodological progress mentioned above. The book’s objective and ambition is timely as the integrated energy system, i.e. the cross-sectoral and energy carriers’ integration and interaction, is the means to achieve energy transition and accelerate the interdependence on fossil fuels as per the EU vision.
Figure 1.4 Graphical representation of an integrated local energy community.
To this end, this book addresses the regulatory and policy frameworks related to the deployment of local multi-carrier energy systems, the concept of ILEC with mapping of enabling technologies and key actors for the implementation of this energy paradigm at the local level, innovative approaches on investment decisions, and optimal planning in the long term but also operational analysis in both medium term and short term. Real-time operation and control is also addressed through consumer-centered approaches. On top of that, sustainable business models and the integrated market interaction with such systems under a realistic view are included.
List of Abbreviations
AFID
Alternative Fuels Infrastructure Directive
CCHP
combined cooling heat and power
CEF
Connecting Europe Facility
CHP
combined heat and power
EED
Energy Efficiency Directive
EPBD
Energy Performance of Buildings Directive
ETIP
European Technology and Innovation Platform
EU
European Union
EV
electric vehicle
GHG
greenhouse gas
ICE
internal combustion engine
ILEC
integrated local energy community
MI
Mission Innovation
P2G
power-to-gas
RED
Renewable Energy Directive
RESs
renewable energy sources
SNET
Smart Networks for Energy Transition
SRI
smart readiness indicator
V2G
vehicle-to-grid
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