Heat pumps can be turned on when electricity demand is lower, and off at peak times. This balances out electricity demand and reduces costs for the EU’s energy system and for consumers.
To ensure this happens, consumers need to have some sort of incentive, such as electricity tariffs that go down when overall power demand is lower.
Grid operators need to be aware of the flexibility potential offered by heat pumps and take this into account in their grid planning.
It is also important that heat pumps can be switched off and on to enable grid stability and help the power system run smoothly.
EHPA has inputted into EU initiatives such as the ‘Network Code on Demand Connection’ – this harmonises the rules over how to connect large renewable energy plants to the grid and integrate demand response into the electricity grid.
Another is the EU’s Grid Connection Code, which sets the rules for connecting users, like power generators and consumers, to the electricity grid.
These rules are meant to ensure a reliable and secure grid, boost renewable energy, and support fair competition in the electricity market.
In December 2025, the European Commission’s published a Grids Package which aims to modernise Europe’s electricity grids, and connect them up better. This will help integrate more renewable electricity and lower energy prices – both key to speeding up heat pump rollout.
EHPA stated that this is an important signal from the European Commission. Rapid implementation across Member States will be key to unlocking the benefits of clean, smart, and flexible heating.
A crucial part of flexibility is the ability to store heat – known as ‘thermal energy storage’.
During a technical webinar in December 2025, experts from several leading research institutions, including EU-funded projects in which EHPA was involved showed their latest progress on this. These include BEST-Storage, which is looking into peak load reduction and energy cost minimisation and ECHO, which is researching modular thermal energy storage solutions.
Read more of our annual report 2025:
- Introduction
- A clear policy direction
- Affordability for heat pumps
- Industrial heat pumps and waste heat
- Competitiveness and skills
- Product design, innovation and certification
- Partnerships, communications and campaigns
