Energy system integration is considered a crucial aspect of delivering the EU’s target to achieve climate neutrality by 2050.
By Paul A. Davies and Michael D. Green
On 8 July 2020, the European Commission (the Commission) issued a new Communication, “Powering a climate-neutral economy: An EU Strategy for Energy System Integration” (the Communication). The Communication is one of several recent policy initiatives to further the European Green Deal goal of achieving carbon neutrality by 2050. (See EU Commission Formally Announces European Green Deal.) The Communication notes that the current energy system is built on parallel and vertical energy value chains, which link specific sources of energy with specific end uses. According to the Commission, this system cannot deliver a climate-neutral economy due to its technical and economic inefficiency, substantial losses in the form of waste heat, and low energy efficiency. As such, the Communication outlines a plan for an integrated energy system that would establish a “pathway towards an effective, affordable and deep decarbonisation of the European economy in line with the Paris Agreement”.