Refining industry representation in PYPSA-EUR through flexible scenarios and cluster-aligned node selection

The transition of energy-intensive industries towards climate neutrality requires substantial effort, not only at site level but also for the energy system that needs to adjust in time to conserve adequacy. To maximise system value, investments at both levels should be jointly optimised. Nowadays, EU industry struggles with an unfavourable investment climate due to high energy prices, an unlevel playing field and complex regulatory framework. Despite the uncertain outlook for industry, energy system planning should continue for any required infrastructure adaptations to be ready in time. Here, industrial clustering can be a way forward. Not only does it enhance competitiveness, but it also improves industry representation in energy system models, both in terms of spatial and technology detail. This work introduces industrial clusters in the open-source PyPSA-Eur framework and describes an extension that updates default assumptions on industrial energy demand with detailed, sector-specific transition pathways. To validate the effectiveness of the extension, the updated model is applied to a subset of EU industry-dense countries: Belgium, the Netherlands and Germany. By comparing results the impact of a cluster’s energy transition on the local energy system is illustrated. The extension is useful for strategic energy planning in and across industrial clusters.