Energy Cost Centre-Based Modelling of Sector Coupling in Local Communities

This paper presents an analysis of energy use and sector coupling in a local energy community using a model based on energy cost centres (ECCs), functional units for decentralised responsibility and optimisation of energy use within defined system boundaries. The ECC model enables structured identification and optimisation of energy and material flows in complex industrial and urban settings. It was applied to a case study involving an energy-intensive steel plant and its integration with the surrounding community. The study assessed the potential for renewable electricity production (7914 MWh annually), green hydrogen generation, battery storage, and the reuse of 11,440 MWh of excess heat. These measures could offset 9598 MWh of grid electricity through local production and savings, reduce natural gas use by 4,116,850 Nm 3 , and lower CO 2 emissions by 10,984 tonnes per year. The model supports strategic planning by linking sectoral actions to measurable sustainability indicators. It is adaptable to data availability and stakeholder engagement, allowing both high-level overviews and detailed analysis of selected ECCs. Limitations include heterogeneous data sources, uneven stakeholder participation, and the need for refinement of sub-models. Nonetheless, the approach offers a replicable framework for integrated energy planning and supports the transition to sustainable, decentralised energy systems.