Flexible heat pumps could cut peak electricity prices by 13.5% in Germany

What if the 2.2 million heat pumps already installed in Germany could help bring down electricity prices?

New analysis from the European Heat Pump Association (EHPA) and smartEn – Smart Energy Europe shows they can.

Looking at a peak hour in February 2026, the analysis found that using Germany’s heat pumps more flexibly could have reduced wholesale electricity prices by 13.5% during that hour, cutting the day-ahead price by €17/MWh.

Across the whole month, this could have translated into around €31 million in wholesale market savings.

The principle is simple: heat pumps can pre-heat buildings before electricity demand peaks, reduce their consumption during the peak, and shift demand towards hours when electricity is cheaper or more abundant.

And this does not require waiting for new technologies. The heat pumps are already there. By enabling them to respond more flexibly to the electricity system, they can become an active resource for consumers and the grid.

“Flexible demand can lower electricity costs, make better use of our grids and reduce our dependence on expensive imported fossil fuels. It’s an opportunity we can’t afford to miss,” said Paul Kenny, Director General of the European Heat Pump Association.

The analysis is part of Revolutionising Energy Use with Flexibility, a campaign developed by EHPA together with smartEn – Smart Energy Europe and E-Mobility Europe, and launched at the FlexCon conference on flexible electricity on 23 September 2026.

Starting with heat pumps and electric vehicles, the campaign shows how technologies already being deployed across Europe can become active sources of demand-side flexibility.

By responding to market signals and shifting energy use to times when electricity is cheaper or more abundant, they can help reduce wholesale electricity prices, ease pressure on the electricity system and unlock more value from electrification.