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Survey evidence on cost-effective residential flexibility contracts for electric vehicles and heat pumps

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  • Baptiste Rigaux

  • Sam Hamels

  • Marten Ovaere

Abstract

We study household acceptance of flexibility contracts for electric vehicles (EVs) and heat pumps (HPs), two key technologies for the energy transition. Using a survey and choice experiment with around 3,000 households, we analyze how contract design—particularly comfort limits such as indoor temperature or driving range— affects both the decision to participate and the flexibility households are willing to supply at different levels of remuneration. Around 70% of households in our sample are willing to participate. Discomfort affects utility nonlinearly for EVs: remaining range is valued at close to €0/km above 100 km but rises to €0.40/km below, while HP flexibility is valued at about €2 per degree of indoor temperature reduction. We derive conditions under which flexibility contracts can achieve cost-effectiveness while remaining acceptable to households. Back-of-the-envelope calculations suggest potential load reductions of up to 300 MW/event from HPs and 800 MW/event from EVs per million units.

Suggested Citation

  • Baptiste Rigaux & Sam Hamels & Marten Ovaere, 2025. "Survey evidence on cost-effective residential flexibility contracts for electric vehicles and heat pumps," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 25/1130, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:25/1130
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