Regulatory best practice for system integration of renewable energies in the context of sector coupling technologies

The global transformation of the power supply (Global Power System Transformation) is being driven by a strong expansion of renewable energies, especially in the power sector, and their successful system integration. Sector coupling plays an important role in the energy transition and the system integration of renewables. Sector coupling refers to the use of electricity in the consumption sectors, including heat and transport. Important technologies here are heat pumps, air-conditioning systems, electric heating rods in heat grids for electricity-heat coupling, hydrogen electrolysis for electricity-gas coupling, electricity-powered vehicles for electricity-transport coupling, and the direct use of electricity for industrial processes, e.g. in steel production.

The transformation of the energy system and, in particular, the diffusion of sector coupling technologies pose challenges that can be of a technical, economic and social nature. With regard to the effect on the decarbonization of the demand sectors, sector coupling options differ due their effectiveness and overall efficiencies. Furthermore, different paths of sector coupling result in energy carriers with different value for the energy system, storability and different application options. In addition, the development of the necessary infrastructure must be included. Suitable regulatory instruments are key to address these challenges and contribute to an efficient energy transition.

The project is linked to the Global Power System Transformation Initiative ( The mission of the initiative is to bring together key actors to foment a rapid clean energy transition at unprecedented scope and scale by providing coordinated and holistic “end-to-end” support and knowledge infusion to power system operators.

The aim of the project is to promote knowledge transfer regarding best practices in the transformation of the power sector for a successful energy transition. This includes the following specific objectives:

  • Identification of the status quo and regulatory needs in developing and emerging countries (focus on China, Mexico, MENA region and selected Southeast Asian countries).
  • Evaluation of existing international activities
  • Identification of areas with highest need for action
  • Identification of best practice examples and development of model solutions
  • Derivation of recommendations for key actors
  • Diffusion of project results through appropriate channels

Overview of the status quo of renewable energy system integration and sector coupling in the MENA region (esp. Egypt, Jordan, Morocco, Saudi Arabia), Southeast Asia (e.g. Indonesia and Vietnam), China and Mexico.

Overview of the status of the framework conditions and best practice examples of the energy transition with regard to the system integration of renewable energies and incentives and barriers for sector coupling from an actor perspective. Finally, recommendations for key players should be derived.




2020 to 2021


BMWI under the Global Power System Transformation Initiative