A cost-effective transition: Unlocking the benefits of sector coupling

The EU is committed to the transformation towards a low-carbon economy as detailed in the 2050 long-term strategy. Climate change risks require urgent action and the ultimate challenge is to carry out the required transition towards a greener future at affordable cost for EU citizens and businesses and in line with EU energy security perspectives.

To produce a carbon-neutral, affordable and secure energy mix, all energy vectors – electricity, gas, heating & cooling – will have to evolve. New technology is already giving more options to consumers (e.g. transport and residential heating now employ workable alternatives to petrol and gas, respectively) and is physically linking the energy vectors – Power-to-Gas and Gas-to-Power. ‘Sector coupling’, the integration of energy end-use and supply sectors, could potentially reduce the costs of decarbonisation and improve energy efficiency.

In order to enable the development of the full potential of sector coupling, the interlinkages between the electricity, gas and heating & cooling sectors should be appropriately considered at all levels of policy, eliminating undue barriers and ensuring coordination and consistency.
EURACTIV organised this high-level Forum to discuss the challenges ahead for enabling an efficient sector coupling.

Questions included:

  • How can efficient decarbonisation be achieved? What is the objective of sector coupling in the energy transition?
  • Does the current EU regulatory framework allow for efficient interaction between electricity and gas sectors?
  • What role for infrastructure in bringing the two sectors together?
  • What would be necessary to encourage the development of carbon-neutral technologies and infrastructure optimisation? – How to close the gaps preventing the efficient linking of the electricity and gas sectors?

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LUKOIL is one of the largest publicly traded, vertically integrated energy companies in the World. The corporate mission of LUKOIL is to make the energy of natural resources serve the interests of mankind. Every day millions of consumers worldwide buy LUKOIL products, energy and heat, improving the quality of their life.

LUKOIL’s main activities are exploration and production of oil and gas, refining and marketing of petroleum products and petrochemicals, as well as power generation. In order to reduce environmental impact and make efficient use of resources, LUKOIL has developed renewable energy solutions including hydroelectric, solar and wind generation.

LUKOIL conducts its business in a responsible and sustainable way, seeking to strike a balance between socio-economic and environmental development by supporting communities, contributing to the economy and preserving the environment. The company stringently abides by the highest global environmental standards and shares the principles of the United Nations Global Compact ensuring high levels of occupational safety and health. Taking social responsibility for the efficient use of natural resources in all its earnestness and maintaining favorable environmental conditions in its business, LUKOIL is guided by the highest HSE standards. In its operations LUKOIL pursues the sustainable development principles and seeks to achieve a good balance between socio-economic and environmental development.

LUKOIL corporate governance system is based on international best practices and fully incorporates the principles of openness, regulatory requirements, fair competition, and transparency.

LUKOIL ordinary shares are admitted to the Moscow Exchange. LUKOIL depositary receipts are listed on the London and Frankfurt Stock Exchanges, as well as on the US OTC market.

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