Heat pump flexibility as a key driver for reducing consumers’ bills and energy system costs
The EU must decarbonise and electrify its energy system to meet its climate targets and become carbon neutral by 2050. In this context, demand-side flexibility and the active engagement of consumers will become increasingly more central to align consumption with intermittent renewable generation and reduce grid congestion. Accelerating the deployment of heat pumps and unlocking their flexibility potential is key, since heating and cooling needs account for half of EU’s energy consumption and up to 80% in households. This paper expands on the benefits of demand-side flexibility in buildings, both for consumers and the overall energy system. It then provides a brief overview of the developing EU regulatory framework, which still presents numerous gaps and bottlenecks. Lastly, three priorities are identified to unlock heat pump flexibility: regulatory simplification; incentivising flexibility through dynamic energy contracts and cost-reflective network tariffs; empowering and rewarding flexible consumers for providing system services.