ASSET study on Sectorial Integration

February 2018

Energy transition to a low carbon economy requires action in all economic sectors. As Europe is not only committed to achieve the objectives of the Paris Agreement, but to be in the front lead, actions are firmly engaged in innovation, in improving energy efficiency, in developing renewable energy sources and in reshaping a market regulatory framework supporting the energy transition. All scenarios for transition to a low carbon economy show that renewables will have to move into the center stage of the energy mix. This growing share of renewable power mostly of a variable nature come with a growing demand for flexibility in the electricity grids, in particular demand management and energy storage. To decarbonise the economy, renewables will have to increase their share in all economic sectors, not only electricity.

This study analyses how sectoral integration based both on electricity and H2 can deliver deep decarbonisation of the EU energy system at affordable price. It highlights the versatile role of green hydrogen that can be used directly as a fuel but also as a feedstock to produce clean gas and clean liquid fuels, and as a provider of electricity storage services.