The Annual smartEn / Delta-EE market monitor for Demand-Side Flexibility shows the rising potential and value of residential EV charging

As our economies are moving on from traditional energy systems, new, smart solutions will be required to manage the increasingly variable generation mix whilst maintaining affordability and ensuring the security of supply. Electric vehicles (EVs) and managed charging are a focal point for securing flexible demand. Acting as decentralized energy resources (DERs), EVs enter a wider ecosystem alongside distributed renewable generation, demand response and energy storage, which will be crucial features of the future energy system.

amepco commitment statement

As a member of smartEn, the single European voice of innovative companies that provide digital and decentralized energy solutions, AMPECO has committed itself to being an active player in the consumer-driven clean energy transition. Today, smartEn published its annual market monitoring report on Demand Side Flexibility (DSF), a valuable resource for understanding the market for flexibility in Europe.

The report gives an in-depth analysis of the different opportunities and value streams for flexibility in Europe, including the value of intelligent managed charging. It looks at the availability, accessibility and monetisation of DSF to value streams and highlights the role of various asset types and customer segments in this ecosystem. This report also looks at what the latest legislative developments bring to the sector and the upcoming timeline of political changes.

If we are to achieve cost-effectively the 2030 targets set out in the EU Fit for 55 package, the maximization of the value of consumers’ flexibility will be required, whether from electric vehicles, smart buildings, and industries. We are not yet where we need to be to fully exploit the benefits of demand-side flexibility“. 

Michael Villa, Executive Director of smartEn

The report sheds light on the most recent state of affairs in the area of flexibility in Europe. In case you missed the launch event for the report, we have summarized the main takeaways for you:

1. Regulatory progress on demand-side flexibility

Most countries in Europe have commercial and remunerated ancillary services. This allows for the aggregation of assets and participation of residential EV users in the energy markets, which brings them monetary benefits. In turn, network operators benefit by using flexibility to avoid costly network reinforcements and better manage their grids. This takes the form of procuring flexibility for constraint management (e.g. peak shaving) and congestion avoidance, but lack of EU-wide harmonization leads to various barriers across countries.

2. The role of local flexibility and energy communities

Integrating EVs and other clean technologies is also an organizational challenge that requires active participation of end-users. In this sense, energy communities can increase local system efficiency and make a serious contribution to solving this.

As of the end of 2021, the United Kingdom and the Netherlands are the only countries with commercial distribution system flexibility while 11 others have ongoing trials. In this context, EVs and managed charging are encouraged to participate in balancing the network at a local level. Drivers see reduced complexity as their participation is streamlined and financially rewarded.

3. The potential market size for flexibility and future demand

The total value of flexibility in most of the Western European countries is estimated to be above 500M Euro, according to smartEn and Delta-EE. In fact, Spain, the United Kingdom, Germany, Italy and the Netherlands account for 60% of the total value of flexibility. Generally speaking, countries with limited network interconnections can benefit even further from local flexibility.

Moreover, higher EV utilization rates, especially in the context of managed charging in a residential setting, provide for alleviation of the EU-wide high electricity prices and provide value.

Author Picture - Stefan Ivanov
Policy and network operators are expected to adapt in order to allow smart charging market access for procuring flexibility services. This will avoid unnecessary grid reinforcement, and also lead to a faster roll-out of chargers without creating permitting bottlenecks at locations.
Stefan Ivanov
Chief Revenue Officer at AMPECO

Flexibility markets outlook

In conclusion, the European landscape can be segmented into three types: mature markets, active markets and emerging markets. Electric vehicles and smart chargers are only part of the set of solutions we need for an efficient power system of the future and the links with active and smart buildings needs to be reinforced.

It is a positive sign that countries throughout the continent work towards enabling the value of flexibility. In fact, it is markets, like Spain and Italy, which currently underperform, that will have greater value in providing flexibility via EV charging as their energy systems will have greater need for it with increased levels of electrification. This is particularly true with upcoming EU renewable targets and higher penetration of renewables. 

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The State of Demand Side Flexibility in Europe 2022 - The Annual smartEn / Delta-EE market monitor for Demand-Side Flexibility shows the rising potential and value of residential EV charging


Petar Georgiev

Head of Strategic Alliances & Sustainability

About the author

Petar is at the forefront of pioneering the green energy transition, driving progress through strategic partnerships and innovative e-mobility solutions.