Smart customers and flexible energy at the heart of the UK’s Clean Power 2030 ambitions

Flexibility is the term to describe that two-way flow of energy to balance our energy system: electricity flowing from producers, through the grid, to customers, but also from customers themselves – from their homes or businesses, using solar panels, batteries, electric vehicles and the like – back into the grid to be shared and used elsewhere.

With a pledge to source 95% of the nation’s energy from renewable sources by 2030, flexibility will be a priority for the new energy industry and for its customers. Why? Because the reality is renewable energy sources such as wind and solar depend on unpredictable weather, which means a need for flexibility to balance supply and demand on the grid and to make new energy work.

The latest report from the National Energy System Operator (NESO) sets out a projected increase in demand-side flexibility, aiming for 10-12GW of electricity by 2030, that’s as much as the capacity of six coal fired power stations the size of Ratcliffe-on-Soar, the last of its kind to be closed in the UK.

This flexibility could involve charging electric vehicles at the most efficient times, shifting household consumption away from peak times, increasing energy storage and enabling industry to be more responsive to energy demand spikes and playing a role in supplying the grid or reducing their own demand. A shift that could be achieved by customers taking advantage of digital and automated technology to control how they use, generate or store their energy – and sharing in the benefits in terms of lower bills.                                                                                                                                       

But how does this help customers? How can it empower households, businesses and even communities to change the way they use and save energy?

Calling on a range of experts across E.ON – from home and transport solutions to industrial and energy generation expertise – we look at how a move to a more flexible energy system could make energy smarter, more affordable and create opportunities for everyone.

Time-shifting household demand

Not time travel, but shifting when we use energy: from peak demand periods to off-peak periods and sharing the benefits through smart tariffs and incentivised programmes that reward customers for taking the cleaner option.

“It’s about making energy affordable and accessible for all. The key is to focus on the best offer in terms of both value and flexibility by working collaboratively with grid operators. That could be as simple as helping consumers shift their energy use to cheaper off-peak times – reducing bills and pressure on the grid – or helping those with energy solutions such as solar panels, heat pumps and EVs to maximise and store the potential. It’s about making energy an enabler for people’s lives, incentivising them to get the most out of their energy use in smarter more flexible, cleaner and greener ways.” Andy Sage, Head of Partnership Propositions at E.ON Next

At E.ON Next we’re already rolling out technologies which offer more flexibility, such as solar and battery storage. As well as the physical solutions, we’re empowering solar, battery and EV customers with real-time access to dynamic energy pricing through Next Solar Max, our smart energy pilot which helps them to take control of their energy use and unlock new earning potential. We’re also tapping into the wider potential for flexible energy use with the UK’s first mass market time-of-use tariff which unlocks cheaper electricity rates at off-peak times.

Next comes something called Market-wide Half Hourly Settlement (MHHS) which will open more doors to demand-side flexibility. By tracking electricity use in 30-minute blocks – compared to monthly meter reads – suppliers can better understand consumption patterns and make energy a whole lot personal. Right now, we’re driving a programme to make this a reality, with the first E.ON Next customers to be moved to the new system before the end of 2025.

Smart charging for electric vehicles (EVs)

Shift how and when we charge electric cars, and specifically moving away from peak hours, reduces strain on the grid and potentially leads to lower electricity (and motoring) costs for consumers. The next step is perhaps making this something of an income stream for car owners, effectively using EVs as mobile batteries that can feed energy back into the grid at peak demand times. 

 “The future of transport is electric and, as technology continues to evolve, it will be one of the essential drivers for building a more flexible, sustainable and resilient energy system. AI will help us manage grid demand and optimise charging. It will unlock bi-directional charging capabilities like vehicle-to-grid (V2G) technology, offering valuable flexibility from stored EV energy to help balance the grid during periods of high demand.

“It’s not just about charging; it’s about generating and sharing energy – a game changer not just in the world of cleaner motoring, but in creating cleaner more flexible power.”  Dave Butters, Director of E.ON Drive

At E.ON we’re already making significant strides on the road towards this vision. We are working to integrate bi-directional charging (where your car takes power from your home into its batteries – but can also feed that power back into home use, or even into the grid) into our E.ON Home App to give EV users more control over their energy use.

We are also testing the technology’s role in everyday life via our Bi-ClEVer project, demonstrating the potential cost savings it could offer.

By purchasing electricity when prices are low, storing it in vehicles, and selling it back to the grid during peak pricing, EV owners have the opportunity to generate additional income by supporting the decarbonisation of the energy sector. At the same time it can enhance market and grid flexibility by optimising the use of sustainably generated energy during periods of high demand.

Digitisation and smart technologies

The widespread adoption of smart meters, smart appliances, and other digital technologies will play a crucial role in enabling and facilitating demand-side flexibility. 

“The future of energy is not just how we generate it, but about how wisely we use it. Some of the greatest opportunities in energy today lie in digital advancements and more intelligent systems. From smarter technologies that boost a more efficient and reliable customer experience like Energy Viz, to AI powered tools like our voice agents CLaiRE and DaiVID that automate processes, improve customer service, and help consumers fine-tune energy use to their individual habits.”  Lee Durham, Director of Digital Technology at E.ON Next

AI and digital technology have become an essential part of the E.ON world, from smart meters to apps that monitor and schedule energy use such as Billie (E.ON Next’s award winning digital billing experience) to AI-powered platforms that enhance grid performance, we’re investing in digital solutions that prioritise customers.

A forthcoming upgrade to the E.ON Next app will incentivise customers to choose more cost-effective, off-peak tariffs, or complete energy-saving tasks by awarding points that can be exchanged for discounts on products or services. What’s more impressive is the app’s ability to integrate green solutions such as EV charging, heat pumps, and solar energy usage, making the experience more flexible and more personalised.

Responsive industrial demand

During real-time periods of high demand, industrial customers can be incentivised to adjust their electricity consumption and use less at peak times, potentially reducing pressure on the grid to help the system run more smoothly.

 “Flexibility makes companies more resilient to market fluctuations, enabling them to optimise energy spend, protect themselves against volatile electricity prices, and actively contribute to grid stability. In today’s dynamic energy markets, this is a clear competitive advantage.

“Although flexibility can pose a challenge for the complex needs of some large corporate customers, it’s an exciting space to be moving into. There’s a lot of potential in industrial and corporate demand side flexibility, whether the goal is meeting ECG targets, reducing cost pressures, or improving security of supply. For companies ready to unlock this potential and take control of a cleaner energy future, now is the time to take the next step.” Dan Owen, Future Flex Manager at npower Business Solutions

At npower Business Solutions, we offer a portfolio of flexible solutions to industrial and commercial customers. Energy Shift, our first time-of-use tariff aimed at mid-market customers, aids their ability to move consumption out of peak times while still providing certainty on energy costs. One of the very first customers to take this product, with an energy consumption around the size of 55 UK homes, is already seeing the cost savings potential, which based on a 50% shift to off peak times is estimated to lower bills by hundreds of pounds a year.

For our larger industrial customers, we can look to optimise any assets they have on site, or their industrial processes, to allow them to earn revenue through the wholesale market.

In addition to energy contracts, we also provide metering and data collection contracts alongside our energy management tool My Energy Coach, to help customers visualise their usage, maximise efficiency and accelerate their journey to cleaner more flexible power.  

Transforming cities

Using integrated solutions, which coordinate multiple energy sources and technologies, will help communities, cities and regions become more sustainable, more resilient and adapt to an evolving energy world where clean power is more flexible and even shared.

“Today’s cities face complex, resource-constrained challenges that can’t be solved in isolation. Clean Power is about making energy more affordable, more sustainable – it’s about climate change as much as it is about economic growth. To make real progress, we must find new ways to collaborate – bringing together diverse sectors to tackle interconnected issues, such as energy sharing to drive meaningful change and help reach environmental targets.”

“We need to rethink how systems like transport, energy, and housing can become more flexible and work better together. That often means integrating smarter, digital infrastructure, local energy systems such as microgrids or new circular energy models that link the energy needs and by-products from different sectors like ectogrid. All of these need a forward-thinking mindset across sectors.”  Phil McDermott, City Energy Transformation Lead at E.ON

E.ON has teams dedicated to improving cities across the UK. Through our pioneering collaboration with Coventry City Council as the city’s Strategic Energy Partner we aim to delivery cleaner power, make energy more affordable and boost the local economy.

Just one of the projects in Coventry is a pilot to install free batteries in the homes of vulnerable customers. Results from the pilot have shown that, through the combination of a battery and Time of Use tariff, bills can be lowered by as much as £255 year, demonstrating the potential to reduce bills and energy debt for the long term, and at the same time to build more demand-side flexibility to help balance the grid.

 

Elsewhere in the country we continue to think outside the box, such as a first-of-its-kind solar sharing project fitting solar panels at an East London school with surplus power allotted to nearby homes at a discount. This brings both cost and environmental benefits while increasing energy resilience. And in East London’s Royal Docks at the Silvertown development, we’re pioneering the UK’s first ectogrid™, what’s known as a 5th generation heat and cooling network based on the concept of shared energy that will supply energy to more than 6,000 homes and businesses.

Further north, we’re supporting Sheffield’s bold steps to become a zero-carbon city by 2030, with plans to expand our existing district heating network. The network is powered by our Blackburn Meadows biomass power station which is also home to one of our first battery projects, with the flexibility to respond to grid demands in less than one second.

Financial incentives and pricing mechanisms

Implementing various financial incentives and pricing mechanisms can encourage consumers and businesses to actively participate in demand-side flexibility programmes. 

“Dynamic energy pricing empowers consumers to optimise their energy consumption to times when costs are lower and greener power is plentiful. Tools like Amber do just that by offering real-time choices based on price and demand. While this will not be for everyone, time-of-use tariffs will enable homes without the necessary technology to benefit in the clean energy transition and access cheaper prices. The potential savings will be especially significant for those who reduce their electricity use during peak winter hours when the Capacity Mechanism charge applies.

“In the industrial and corporate space, demand-side flexibility is just as vital in supporting a future of intermittent renewable generation and will not only help balance the network but ensure security of supply. These large-scale customers can play their part and even earn revenue by providing flexibility through wholesale capacity markets.“ Sarah Palmer, Senior Flexibility Manager, E.ON Energy Markets

Within E.ON Next we already have the capability to put households in control, allowing them to make informed decisions about when to use electricity while supporting a cleaner, more flexible energy system. 

Our Next Solar Max platform offers solar and battery customers access to dynamic energy prices, automatically analysing household energy habits, forecasting solar generation and monitoring energy prices so it can create personalised energy plans to adjust energy use to individual customers’ needs.

Customers signing up to time of use tariffs like our Next Smart Saver and Next Drive can benefit from cheaper off-peak rates. Savings are greatest when customers can move energy usage away from high peak periods; weekday 4-7pm; to lower periods such as overnight as this avoids periods of most expensive time to use the energy system.  

In conclusion, the breadth of innovative projects across the UK, from pioneering solar sharing initiatives to dynamic energy pricing, demonstrates a clear commitment to building a cleaner, more resilient energy system. By offering households and businesses the tools and incentives needed to participate in demand-side flexibility, we are not only driving down costs and carbon emissions, but helping customers use energy more wisely, as well as ensuring our networks are prepared for a sustainable future.

While these success stories highlight what is possible when we embrace new approaches, the challenge of delivering clean power by 2030 cannot be understated. To accelerate progress, continued collaboration, investment, and the adoption of innovative technologies will be essential. Ultimately, the energy transition must provide flexibility and opportunities for everyone, ensuring that no one is left behind as we move towards a fairer, cleaner future for all.