Regulatory barriers for sector coupling systems on distribution level

Abstract:
In many studies and investigations, the benefit of sector coupling for reducing greenhouse gas emissions has been identified. However, electricity, gas and heat networks are planned separately nowadays and are generally not designed for cross-sectoral use. A reason for this is the regulatory framework, which has an inhibiting influence on sector coupling. This paper focuses on the barriers of the regulatory framework that inhibit a cross-sectoral integrated planning of electricity, gas and heat networks as well as the currently applied support programmes to overcome these obstacles. The obstacles for distribution network operators to use coupling systems are the limited scope of action due to the Energy Industry Act and the award of distribution concessions for gas and electricity networks. The unprofitable operation of the coupling system, on the other hand, is an obstacle for the operator of a coupling system. The operation of the coupling systems is uneconomical today because of the high investment and operating costs, additionally the electricity required for operation is highly taxed and levied, leading to higher expanses compared to other technologies. The previous government support programmes for sector coupling based on the reduction of taxes and levies are insufficient and do not address the problems resulting from the Energy Industry Act, the distribution concessions and incentive regulation.