Sector coupling: How we will master the Herculean task of this decade

A Herculean task describes a huge challenge that requires incredible efforts: the energy transition and sector coupling are perfect examples. Numerous changes will have to be implemented at top speed before the end of this decade. Single-family homes will connect their PV systems, EVs and heat pumps, and will very soon connect to energy systems from other homes to form energy communities.

Moreover, the current geopolitical situation increases the desire for energy independence as well as its urgency, further accelerating these developments.

Sector coupling in the home can only be achieved at large scale with an OEM-independent energy management platform. In this blog, we explain the complexity of the challenge, how urgently we need to address it and how we can conquer it.

What makes sector coupling a Herculean task?

The increasing convergence of the electricity, mobility and heating sectors, as well as establishing ever more connectivity of decentralized energy systems are positive and crucial developments. At the same time, their complexity must not be underestimated.

Even connecting the decentralized energy devices in a single-family home entails at least eleven relevant combinations, and that’s before establishing a connection to a smart meter or the grid. Additionally, models from the various manufacturers have different interfaces and protocols that must be connected.

The market for decentralized energy systems is growing – and so are its segments

Not only is the number of individual devices growing, but the degree of their connectivity is also increasing. Until now, individual installations have been very common. At over 50 percent, PV systems were the most dominant segment, followed by heat pumps and EV chargers. This is changing.

From 2025, the share of energy systems with at least two connected devices such as a combination of a PV system and EV charger or a PV system and heat pump is expected to grow strongly.

Connected devices require energy management

Applications involving only the management of a single energy system will become increasingly rare in the future, while integrated applications will become the new standard. As early as 2030, the market for decentralized energy will be dominated by EVs and energy systems consisting of more than one device. The more complex the decentralized energy world becomes, the more crucial it will be to manage it intelligently. The rising share of connected energy systems makes a manufacturer-independent home energy management system (HEMS) indispensable, as the energy transition will only succeed if customers and ease of use are front of mind.

The Herculean task of our decade is:

At Kiwigrid, our ambition is to implement sector coupling in the home as quickly as possible. Are you a system distributor, OEM, energy service provider or energy supplier? Contact us!