Power system flexibility is already here, just too little

Flexibility is the ability of a consumer, electricity generator, or any other technology (like storage) to adjust how they feed in electricity to the grid, or consume electricity from the grid in response to grid needs or solar availability.

Flexibility means less investment is needed for expensive and slow-to-build grid infrastructure. We also need to focus on the efficient and smart operation of grids with smart electrified resources. In real life that looks like a solar power plant coupled with battery storage, or a smart charging station that charges a car when rooftop solar PV is producing abundantly.

Battery storage, in all its configurations, is a fundamental clean flexibility and stability provider, which allows for the cost-efficient integration of more renewables into the energy system. It tackles short-term flexibility needs, provides essential services to the grid (like frequency response or grid forming), and allows households and companies to save on energy costs. 
 

But flexibility isn’t just about storage, demand-side management also plays a critical role. Demand-side management refers to the flexibility of households, businesses, or industries shifting their electricity use to times when renewable energy is plentiful and cheaper. Most people start to optimise their consumption with a rooftop PV installation, for example, by charging a car or doing laundry during daytime. This reduces strain on the grid and cuts grid costs.

Countries with significant nuclear energy often use ‘time-of-use’ tariffs to incentivise electricity consumption during off-peak hours, helping manage inherently inflexible nuclear production. Similarly, consumers could shift energy use to match abundant solar production, reducing strain on the grid.

Power system flexibility must grow five-fold
 

The way we generate and use energy is transforming. Fossil fuel plants are being phased out, replaced by cleaner, decentralised sources like solar plants and wind farms. At the same time, electricity demand is surging with the rise of electric vehicles, heat pumps, data centres and industrial electrification. SolarPower Europe estimates a 50% increase in electricity demand by 2030.

Flexibility allows our grids to adapt swiftly to this transition, enabling us to do more with less while achieving decarbonisation as efficiently as possible. However, Europe must multiply five-fold its flexibility capacity by 2030 to keep up with this growing electricity demand, a target we are currently far from meeting.

The European Parliament has now called for an EU Strategy on Flexibility, recognising its role in delivering industrial competitiveness, energy security, and decarbonisation.

Power system flexibility is an economic opportunity for end-users

By 2030, a flexible and electrified energy system could:
 

How can we boost flexibility?

1. Assess and plan for flex needs

• Map the EU’s flexibility needs by 2025.
• Incentivise grid operators to include flexibility resources such as batteries and demand-side response in their planning processes
• Set ambitious flexibility and renewable energy targets for 2040.
• Prioritise industrial electrification through key policies like the Clean Industrial Deal.
• Introduce an EU flexibility strategy with a dedicated EU Storage Action Plan to support the deployment of battery energy storage systems (BESS).

2. Reward flexibility fairly
 

• Develop price signals and economic incentives to encourage flexible solutions, ensuring their role in integrating renewables and operating grids efficiently. 
• Reform energy taxation to ensure electricity can fairly compete against gas.
• Scale up time-of-use tariffs and dynamic pricing across all EU Member States, enabling households and businesses to shift demand and access lower rates.
• Ensure fair compensation for distributed energy resources providing grid services. 

3. Streamline grid integration
 

• Make it easier to combine solar projects with wind or storage.
• Accelerate the rollout of smart buildings and devices to enhance grid responsiveness. 
• Ensure that flexible assets are seamlessly connected to the grid under clear EU rules. 
• Advance grid expansion at both transmission and distribution levels.
• Ensure grid connection procedures and grid pricing accommodate storage.
• Facilitate flexible connection agreements for grid-constrained areas, ensuring flexible projects are prioritised. 

Flexibility is not just a technical solution. It’s the foundation of a resilient, clean and cost-effective energy future for Europe.