Tap heat pumps’ efficiency and flexibility

Heat pumps can recover waste heat or heat from inside a building.

They also connect many networks: electricity, heating and cooling, industry and district energy. This reduces primary energy demand and lowers the impact on the electricity grid.

Heat pumps can be turned on and off in response to market or grid signals.

All of this reduces grid investments, optimises renewable energy use, and improves the economics of heat pumps for industry, businesses, and households.

This can save ‘electrified’ households 10-15% on their annual electricity bill. 

 

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.

Learn more about the Revolutionising Energy Use with Flexibility campaign developed together with smartEn – Smart Energy Europe and E-Mobility Europe, and download the infographic! 

Screenshot 2026-09-25 at 10.34.07

What should EU policymakers do?

1
Recognise heat pump flexibility and waste heat recovery as strategic pillars of Europe’s energy security
2
Integrate heat pumps’ flexibility potential into energy system planning, and remove regulatory, planning, and financial barriers
3
Ensure heat pump owners have dynamic energy contracts to benefit from demand-side flexibility and reduce their energy bills
4
Ensure flexible grid planning and fast grid connections for ready-to-deploy industrial projects to support electrification

Discover our latest numbers, analysis and market report:

Policy news

The EU has over 10,000 breweries, and a growing number are switching to heat pumps to produce the steam and...

16 Oct 2026

Around 270 kW of excess heat recovered from refrigeration, with no interruption to production during installat...

02 Oct 2026

In the first six months of 2026, sales of residential heat pumps rose by 11% in 12 European countries*, new...

28 Sep 2026

Publications, position papers and joint statements:

Letting consumers choose when they use electricity – offering cheaper rates when there are more renewabl...

07 Oct 2026

A coalition of 50 companies, NGOs and industry associations, including EHPA, is calling on EU governments to u...

06 Oct 2026

Cooling is essential to protect people’s health. Heat pumps can both heat and cool. They can also recover and ...

31 Jul 2026

EU Projects

EHPA’s work on flexibility, grids, and energy system integration is further supported by the EU-funded projects:

Questions? Get in touch.

Policy
Saverio Papa
Saverio Papa
Head of Energy Policy
Communications
Photo: Tim Buelens
Daniela Floris
Communications Officer

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