This study aims at performing a detailed examination of investment decisions and the operational management of a 2050 EU power system with a focus on comparing different decarbonisation options for the provision of industrial heat at different temperature levels. The analysis relies on an upgraded version of the EU energy system model METIS, which allows to jointly optimise investments in electricity, hydrogen and heat generation capacities. The key findings of the study are that adopting a multi-sectoral and multi-energy modelling approach paired with an hourly year-long time resolution allows for a better detection of synergies between sectors while properly reflecting the hourly system dynamics. This may lead to significant benefits in terms of avoided investments and a more cost-efficient achievement of decarbonisation objectives.

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