Following the smart money: why energy investment is flowing into flexibility

Energy security and climate action are no longer competing priorities – they’re two sides of the same coin. And as global crises, shifting weather patterns and consumer demand shake up our old systems, energy investment is pivoting fast. 

This year, investment in clean energy is set to double that of fossil fuels. There’s a clear story emerging: the smart money is no longer just going green – it’s going flexible. 

With climate change accelerating and extreme weather events becoming more frequent, energy systems are under increasing pressure. Droughts disrupt hydropower. Heatwaves drive demand for cooling. Hurricanes disrupt global fuel supplies. 

This kind of volatility isn’t going anywhere, and traditional energy infrastructure isn’t built for this level of unpredictability. So we’re adapting by investing into future-ready solutions like grid flexibility, large-scale battery storage, and energy-as-a-service models. Technologies that help us to balance supply and demand in real time, regardless of what’s happening outside. 

Grid flexibility 

While renewables like solar and wind are essential to our cleaner energy future, they’re also intermittent (because the wind doesn’t always blow and the sun doesn’t always shine!) 

At a grid level, flexibility bridges that gap – storing surplus electricity when supply is high and releasing it when supply falls or when demand peaks (or when prices dictate). It makes clean energy more reliable, supports a more stable grid and reduces our reliance on fossil fuels. It also supports efforts to make energy more affordable. 

Case in point: Uskmouth. Together with Quinbrook Infrastructure Partners, we’re transforming the site of a former coal-fired power station in Newport, South Wales, into a large-scale battery storage facility. The site will house two storage units, each capable of delivering 115MW – enough to power the equivalent of 35 million smartphones. 

And, to support the infrastructure behind that flexibility, Ofgem has granted E.ON a distribution licence – a major milestone in launching our new Independent Distribution Network Operator (IDNO). This new business will enable faster, smarter connections to the grid – unlocking the next wave of clean, connected energy. 

We’re also working with Northern Powergrid to bring flexibility closer to home – literally. Together, we’ve launched a new initiative to install free home batteries and insulation in selected communities across northern Lincolnshire and North Yorkshire. By storing energy when it's cheapest and using it during peak times, households could cut their electricity bills by up to 15%. If successful, the partnership could unlock a new model for community-based flexibility right across the country.

Dynamic pricing 

Sometimes the smartest solutions are the simplest. Dynamic energy pricing lets customers see and respond to real-time electricity prices, encouraging them to shift usage to times when renewable power is most abundant, or when it’s more affordable – or both. 

With tools like Next Drive, and through our partnership with Australian tech platform Amber, we’re giving households the power to: 

• Charge their EVs or home batteries when electricity is cheapest and greenest 

• Sell surplus solar energy back to the grid at peak times 

• Optimise their energy use automatically, saving money and supporting the grid 

It’s about putting people in control – so households can charge when prices are low, sell energy back to the grid when prices peak, and get the most from their home batteries and solar panels — all while supporting a greener, more flexible energy system.  

Batteries, EVs, and bi-directional thinking 

Energy isn’t what it used to be – and neither are energy users. With more homes and businesses generating their own electricity, energy is becoming a two-way street. Batteries and EVs aren’t just passive consumers, they’re active participants. Stored energy can be sold back to the grid. Charging can be timed to avoid peak demand. Smart homes can respond to price signals in real time. 

Batteries and electric vehicles (EVs) are key players. Especially with bi-directional charging now entering the mainstream – allowing EVs to not just move us around, but also to power homes or send energy back to the grid during peak times. 

It soaks up cheap, green energy and feeds it back when the system needs it most. A fundamental shift that smooths peaks, boosts renewables, and puts power – quite literally – in the hands of the people. 

Energy-as-a-service 

Flexibility is becoming the norm – and we’re making it easy to access. 

This summer, we’re launching Next Gen Home – a first-of-its-kind pilot offering low-carbon technologies like solar panels, batteries, heat pumps and EV chargers in a simple, all-in-one, energy-as-a-service package. With 90% of the upfront cost covered during the trial, and fixed monthly payments over 10 years, we’re removing the financial barriers to clean tech adoption.  By installing up to £20,000 worth of low carbon technologies in the home with no upfront costs, E.ON Next Gen Home allows customers to enter the flexibility marketplace cheaply.  

Energy-as-a-service puts insight and automation into the hands of customers so they can optimise their use, reduce manage costs and contribute to a greener grid without the complexity. In terms of flexibility, the included Home Energy Management System will use complex algorithms behind the scenes to ensure that the battery is charged at less energy intensive times of the day and released to power the home and other assets smartly during peak demand, ensuring that grid demand is managed and customers retain a comfortable home. 

The biggest opportunities in energy today aren’t in coal plants or oil fields. They’re in software, storage, and smarter systems. 

From smart meters (we’ve installed more than five million across the UK), to apps that track and schedule energy use, to AI-driven platforms that optimise grid performance – we’re investing in solutions that put people at the centre of the transition. 

Because the future of energy isn’t just about what we generate – it’s about how flexibly, affordably and intelligently we use it.