Heat pumps, electric vehicles, and home battery systems can help to reduce power system cost by responding flexibly to electricity prices and grid conditions. Unlocking this potential depends on the right regulatory and economic incentives, including dynamic electricity tariffs, Section 14a of the German Energy Industry Act (EnWG), the smart meter rollout, and the effective market integration of batteries and EV charging.
We advise utilities, aggregators, industry associations, and policymakers on how to unlock distributed flexibility in ways that are both economically viable and beneficial for the grid, for example through smart charging and vehicle-to-grid (V2G). Our work covers the assessment of flexibility potential, empirical analysis of charging and load data, the development of flexibility strategies, the design of dynamic tariffs, and the implementation of pilot projects. This enables us to develop products and regulatory concepts that effectively activate distributed flexibility. Johanna Bronisch is our flexibility lead.
Dr. Johanna Bronisch
bronisch@neon.energy
+49 155 61 042 055
The Economics of Power Grids (EN)
A comprehensive introduction to the technology, economics, operation, and regulation of electricity grids: from locational pricing and redispatch to network charges and dynamic grid fees. Designed for anyone who plans, operates, regulates, or uses electricity grids, from network operators to flexibility providers.
Dynamic grid tariff pilot (dena). In this pilot, with FfE and UnternehmerTUM, we develop a data-driven framework for dynamic grid tariffs that turns congestion into targeted price signals. We analyze load and price data, examine how price signals affect consumption, assess implications for flexibility business models, and run a field test with load control via smart meter gateways. Ongoing. Website ▸
Dynamic grid charges (EWE). Germany is redesigning its grid tariff system. As flexible assets increasingly optimize against spot prices, synchronization effects create new peaks in voltage-constrained grids. For grid operator EWE NETZ, Neon examines which of these problems time-variable or dynamic tariffs can address and simulates their effects on load, revenues, and cost allocation. Ongoing.
EV flexibility (industrial company). On behalf of a German car manufacturer, we examined structural barriers to marketing flexibility and the role OEMs may play in the flexibility ecosystem. We showed that gaps in digital infrastructure, unclear responsibilities, and weak incentives for grid operators prevent EVs from providing flexibility, giving the company a strategic compass. 2025.
Grid impact of thermal storage (industrial company). Heat batteries turn variable renewable power into steady industrial heat, but grid tariffs favor baseload profiles and discourage flexible operation. We supported a heat battery provider in Germany’s grid fee reform consultation, showing that flexible demand offers both grid and customer cost advantages over baseload. 2025–26.
Smart charging & V2G analysis (Enercity). For the German utility Enercity, we assessed decentralized flexibility with a focus on smart charging and vehicle-to-grid. We analyzed how market and grid signals shape flexibility use and evaluated smart bidirectional charging strategies for vehicle fleets, providing a clear basis for internal strategy and communication. 2025.
Dynamic retail tariff (Naturstrom). German utilities with more than 200,000 customers must offer a dynamic retail tariff, but only a few households have adopted such tariffs. For Naturstrom, one of the ten largest German utilities, we analyzed which household types benefit from dynamic tariffs and quantified the potential to unlock household flexibility. 2025. Report ▸
Flexibility roadmap (utility). With the rise of EVs and batteries, electricity consumers are becoming far more flexible, so load shifting is now less about technical capability than about the right incentives, with major implications for the utility business model. We support a leading European utility in developing a comprehensive flexibility roadmap. 2025.
Grids & Benefits (UnternehmerTUM). Grids & Benefits is a pilot implementing dynamic grid fees together with TSOs, DSOs, and aggregators. Granular fees were published day-ahead and used for grid-friendly load shifting, yielding strong evidence of their impact on low-voltage consumption. For UnternehmerTUM, Neon led stakeholder management, quantitative analysis, and communication. 2025. Slides ▸
Flexibility (utility). Power system flexibility is a cross-cutting issue for utilities, network operators, and providers of decentralized power services. We assisted an integrated utility in consolidating flex-related activities across all units of the holding. 2025.
Demand-side flexibility (BMWE). Everyone supports demand-side flexibility, but it hasn’t taken off. A crucial reason is a variety of regulatory hurdles, from the (lack of) smart meters to peak demand network charges. With Fraunhofer IEG, Prof. Alexander Sauer, En2Flex, and AssmannPeiffer, we support the ministry and prepare a flexibility agenda. Ongoing.
Smart charging (Rabot). Dynamic tariffs allow EV owners to benefit financially from charging their cars when electricity is cheapest; time-of-use grid fees, intraday optimization, and bidirectional charging add further value. For Rabot Energy, a smart charging pioneer, we quantified the financials for a range of typical German drivers. 2024. Report ▸
Tiedemann (2025): Response of electricity consumers to real-time pricing
Schlemminger et al. (2025): Flexibility is the key to decarbonizing heat supply
Winzer et al. (2024): Profile contracts for electricity retail customers
Ruhnau et al. (2020): Heating with wind: heat pumps & variable renewables
Hirth (2016): The benefits of flexibility: wind energy with hydropower