Palm oil diesel factories in Europe
  • EU strategy for Smart Sector Integration

    The paper summarizes T&E’s response to the questions asked by the European Commission on its strategy for smart sector integration. T&E recommends for this strategy to focus on better integrating the electricity and transport sectors.

    Between now and 2030, smart sector integration can enable a smooth integration of the coming surge of electric vehicles (‘batteries on wheels’) in grids where renewable electricity sources will rapidly grow their share. Such smart demand side management of electric vehicles will minimise ‘excess’ renewable electricity by means of peak shaving and load shifting.

    In line with the ‘energy efficiency first’-principle, the direct use of electricity should be prioritised whenever technically feasible, in order to avoid the major conversion losses involved in converting renewable electricity into fuels. Where direct electrification is not an option, policies are needed to target electrofuels at lead markets such as aviation and shipping.