Sector Coupling and Flexibility Measures in Distributed Renewable Energy Systems: A Comprehensive Review

Distributed energy systems (DESs) are crucial for renewable deployment, but decentralised generation substantially increases flexibility requirements. Flexibility is framed as a system property that emerges from the coordinated operation of demand, storage and dispatchable generation across multi-energy carriers. Demand response schemes and demand-side management can provide flexibility, but their effective potential is constrained by user participation. Sector-coupling strategies and energy storage systems enable temporal and cross-sector decoupling between renewable generation and demand. Electrochemical batteries are technically mature and well suited for short-term balancing, but costs and environmental impacts are significant. Power-to-Heat with heat pumps and thermal energy storage is a cost-effective solution, especially when combined with low-temperature district heating. Electric vehicles, when operated under smart-charging and vehicle-to-grid schemes, can shift large charging demands feeding energy into the grid, facing battery degradation and infrastructure costs. Power-to-Gas and Power-to-X use hydrogen and electrofuels as long-term storage but are penalised by low round-trip efficiencies and significant capital costs if power-to-power with fuel cells is applied. On the supply side, micro-CHP can provide dispatchable capacity when fuelled by renewable fuels and combined with seasonal storage. Costs and efficiencies are strongly scale-dependent, and markets, regulation, digital infrastructure and social acceptance are key enablers of flexibility.