How heat pumps can relieve the load on electricity grids

BWP calls for faster smart meter rollout and dynamic grid fees for efficient operation

27.10.2025

Source: E & M powernews

Flexibly operated heat pumps could reduce costs for consumers and at the same time ease the burden on grid expansion - provided that smart meters are used across the board.

The German Heat Pump Association (BWP) has commissioned an expert report on the integration of heat pumps into electricity grids from Aachen-based energy consultancy Consentec and presented the key findings at an online conference on October 27.

One result of the analysis: flexible operation of the appliances can reduce both the electricity consumption of households and the investment requirements of grid operators. However, this requires the ability to coordinate the timing of electricity consumption and grid utilization. When presenting the study, the BWP therefore urged the further development of dynamic grid charges and a faster smart meter rollout.

Because the importance of heat pumps is constantly increasing, the BWP also raises the question of how their growing electricity demand and their integration into the grid can be controlled in a cost-efficient manner. BWP also commissioned this analysis because of the ongoing debate surrounding heat pumps, said BWP Managing Director Martin Sabel at the online conference. Sabel: "Heat pumps and other controllable consumption devices are often seen one-sidedly as a burden on the grids, but as flexible consumers they fit perfectly into a modern energy system that is increasingly characterized by fluctuating generation."

Association calls for accelerated smart meter rollout

On the one hand, Consentec's analysis shows that the electricity consumption of heat pumps can be flexibly controlled and thus aligned with the requirements of the generation system and the electricity grids. "This allows both electricity procurement costs and grid expansion costs to be reduced," explained study co-author Christian Linke, Senior Consultant at Consentec. According to the analysis, heat pump operators could save several hundred euros per year through market and grid-oriented operation alone. At the same time, the grid-friendly use of heat pumps could reduce investments in grid expansion by almost a quarter.

However, for the economically sensible use of heat pumps to work, information on electricity supply and grid capacities must also be available and able to be processed. "This is often not yet possible with the existing technical infrastructure," said Linke. The key lever for this is the consistent further development of models such as dynamic grid charges, which signal local grid utilization in short time intervals. "In practice, this means that, depending on the grid area, heat pumps can draw electricity when a lot of wind or solar power is available or automatically reduce their use at times of high grid utilization. This not only reduces costs, but also the need for additional lines," says energy expert Linke.

According to Sabel, however, a modern digital infrastructure is a prerequisite for fully exploiting this potential. However, smart meters are currently only installed in just under 16 percent of mandatory cases in Germany. The BWP Managing Director is therefore calling for an "accelerated" smart meter rollout. "For flexible tariffs and grid-oriented operation to work across the board, smart meters must become a matter of course," says Sabel.

The existing time-variable grid fee (in accordance with Section 14a EnWG Module 3) should also be developed into a variable grid fee or replaced by one that is based on the actual grid load, so that the flexibility of heat pumps can fully develop its potential to reduce electricity prices as well as grid expansion costs.

"Only if consumption and the grid communicate intelligently with each other can the heat pump develop its full potential and become the driver of a modern energy system." The association welcomes the ongoing discussion process on the further development of existing statically variable grid fees into genuine dynamic grid fees under the Federal Network Agency. At the same time, it appeals to the German government not to let up in its efforts to ease the burden on electricity prices.

Author: Heidi Roider