Supply-side flexibility and demand-side management via smart electrification strategies

Heavy-duty trucks

Current status of implementation and existing gaps

Several governments aim to support the deployment of electric trucks through purchase incentives. These include large markets such as Canada, China, EU, Germany and India. In addition to or apart from direct subsidies, some countries offer tax credits (refer to the next row).

Examples and initiatives

In the Kingdom of the Netherlands in 2023, the government launched the AanZET subsidy (Aanschafsubsidie Zero-Emissie Trucks) of up to EUR 131 900 per new electric or hydrogen truck. A EUR 30 million budget was rapidly oversubscribed, confirming strong demand. In addition, a EUR 150 million package (2024-2026) was announced to subsidise hydrogen vehicles (trucks, vans, buses) and hydrogen refuelling stations: up to EUR 300 000 per vehicle and EUR 2 million per refuelling station.

Iron and steel

Current status of implementation and existing gaps

Smart electrification strategies applied in the transport and industrial sectors, including the iron and steel sector, can add flexibility to the power system. These strategies make the power system more efficient, reducing the need for additional capacity in generation and in transmission or distribution grids, while also making it possible to integrate more renewable sources and reduce peak loads and grid congestion.

Examples and initiatives

IRENA’s digital toolkit on smart electrification presents innovations that are available for power-to-heat and power-to-hydrogen applications in the industrial sector (IRENA, 2023b).

Chemical and petrochemical

Current status of implementation and existing gaps

Smart electrification strategies applied in the transport and industrial sectors, including the chemical and petrochemical sector, can add flexibility to the power system. These strategies make the power system more efficient, reducing the need for additional capacity in generation and in transmission or distribution grids, while also making it possible to integrate more renewable sources and reduce peak loads and grid congestion.

Examples and initiatives

IRENA’s digital toolkit on power-to-heat applications lists technological innovations, market design and regulations, system planning, and operation and business models (IRENA, 2023b). The toolkit proposes a systemic approach to decarbonise the heating process in the industrial sector.

Cement

Current status of implementation and existing gaps

Smart electrification strategies applied to transport and industrial sectors, including the cement sector, can add flexibility to the power system. These strategies make the power system more efficient, reducing the need for additional capacity in generation and in transmission or distribution grids, while also making it possible to integrate more renewable sources and reduce peak loads and grid congestion.

Examples and initiatives

IRENA’s digital toolkit on power-to-heat applications lists technological innovations, market design and regulations, system planning, and operation and business models (IRENA, 2022b). The toolkit proposes a systemic approach to decarbonise the heating process in the industrial sector.

Enablers

Enablers (39)