Flexibility value streams: monetising residential Electric Vehicle flexibility

Why is now the time for residential CPOs to understand the potential value in EV flexibility?

As electrification accelerates, electric vehicles (EVs) aren’t just transforming transport — they’re reshaping how energy flexibility value is created and shared. There will be millions of EVs to be on the road by 2030, their collective potential to shift or store energy makes them a valuable flexibility resource to absorb low-cost renewable energy and reduce peak electricity prices. By 2030, the UK government’s roadmap expects nearly 4GW of consumer-led flexibility capacity in GB to come from EVs via Smart Charging (V1G) and exporting energy from the vehicle’s battery back to the grid (V2G) — growing to over 50GW by 2050, which is equivalent to a compound annual growth rate of over 13%. Flexibility represents the fastest growing value pool across Europe.

Residential CPOs (Chargepoint Operators focused on home charging) and their investors need to understand and prepare to capture the potential value in EV flexibility to stay ahead of competition as new flexibility business models and value pools emerge. Revenues of up to £500 are available per year per residential EV through flexibility revenue – so, how can CPO’s access part of this value?

In this blog, we explore how the value of flexibility from charging EVs at home can be unlocked, who is already doing so, and how investors, residential CPOs and market players can capture this opportunity.

Today’s revenue streams and tomorrow’s flexibility-driven opportunities

Established value pools for residential CPOs include revenues from selling and installing hardware, smart charging and software services, direct charging revenues, maintenance and support services, and data monetisation.

Our research shows a growing trend towards bundled services under a subscription plan are increasingly popular for customers seeking comprehensive and convenient services. These bundles can often include chargepoint install, retail tariffs with mileage included, smart charging management, charging insights through data platforms, and warranty and maintenance. Salary sacrifice cars that include a free charger are also becoming mainstream.

While these traditional value pools remain strong, flexibility is emerging as the next major opportunity for residential CPOs. In GB, recent market reforms and technological advancements are enabling EV participation in wholesale market trading. These changes are significant, enabling access to wholesale markets which are far deeper and wider than other markets for flexibility such as ancillary services and Capacity Markets. By aggregating thousands of EV chargers together, a virtual power plant (VPP) can be created, this can be traded directly into the wholesale electricity market, independent of energy retailers. CPOs can partner with other service providers to generate additional revenue by optimising charging based on wholesale market price signals.

What is required to access value in EV flexibility?

There is clearly significant value available. Next, we explore what is necessary to access that value. Enabling EV’s to provide flexibility value requires more than technology — it depends on delivering across six interconnected capabilities that make up a VPP.

The flexibility virtual power plant (VPP) value chain

Aggregation and optimisation are intrinsically linked and often do not happen in isolation. Deciding the best value stream for the asset may happen multiple times a day depending on external price signals and customer preference.

Companies can deliver these capabilities independently or through partnerships. Those missing certain elements often collaborate with software platforms, aggregators, or technology providers to complete the chain. For example, CPOs with hardware-led offerings, such as Ohme and Pod (formerly Pod Point), fulfil the customer acquisition capability and partner with others, like Axle Energy, to form the full VPP value chain. The complexities and changing nature of the value chain requires specialised expertise to navigate.

Who is unlocking value in EV flexibility today?

A growing number of energy and technology companies are already unlocking flexibility value by combining hardware, software and tariff propositions. CPOs are typically partnering with software providers or platforms that manage interactions between EVs and market operators, enabling participation in energy markets and optimisation of charging.

Delivering residential EV flexibility requires collaboration. No single organisation typically owns the full value chain, so partnerships have become essential. Companies that hold the Contract for Flexibility (the agreement allowing use of a customer’s asset for flexibility) tend to choose one of four models:

1. Retail tariff-led: Octopus Energy’s Intelligent Octopus Go and OVO’s Charge Anytime, both of which partner with technology platforms like KrakenFlex and Kaluza.
2. Hardware-led: Pod Point’s Solo Charger and Easee’s Powerflex Beta, each enabled by Axle Energy.
3. Combined tariff and hardware-led: British Gas’ FreeCharge proposition with Hive and Centrica. Octopus Energy’s V2G bundle with BYD and Zaptec, could also pair with its Intelligent Octopus Go retail tariff to deliver flexibility services in partnership with KrakenFlex.
4. Independent propositions: Monta’s PowerBank with GridBeyond, or Myenergi’s Gridpay with Axle Energy.

Elsewhere in Europe, partners like True Energy and Jedlix enable flexibility propositions in markets such as Denmark, Sweden, and the Netherlands.

Some companies are now offering end-to-end solutions, fulfilling the entire VPP value chain internally. In Great Britain, ev.energy, Electric Miles and Ohme are notable examples, while in Norway and Sweden, Tibber operates a similar model with its Grid Rewards proposition.

For residential CPOs and their investors, understanding these emerging models and where to partner within the value chain is key to capturing EV flexibility value pools.

Unlocking flexibility value: what investors and market players need to know

Realising EV flexibility requires clear market insight, the right partnerships, and awareness of regulatory trends.

1. Quantify potential value
   The first step is to identify where and how EVs can generate returns. LCP Delta models potential V1G (smart charging) and V2G (vehicle-to-grid) revenues across European capacity and energy markets up to 2035, helping clients forecast achievable value based on fleet size and market conditions.
2. Assess risks and regulatory change
   Market reform is increasing flexibility market access but also redistributing value. As participation widens, investors must consider the impact of revenue dilution and the evolving role of subsidised EV tariffs. LCP Delta tracks regulatory developments, code modifications, and market access changes across more than 20 European countries through its Demand Side Flexibility Market Monitor with SmartEn.
3. Develop the right strategy
   Assessing the opportunities, risks and access requirements of available and relevant value streams is an important aspect of developing the right route to market strategy for aggregated EV assets. LCP Delta supports clients in creating rigorous route-to-market strategies that can withstand changing market dynamics and competition.
4. Build the right capabilities and partnerships
   Effective participation depends on fulfilling all six elements of the VPP value chain. LCP Delta supports clients in assessing their current capabilities and identifying strategic partnerships to build effective business models.
5. Understand customers and participation behaviour
   Unlocking flexibility value ultimately depends on consumer participation. Domestic EV owners are increasingly open to smart charging but remain cautious about V2G due to concerns over battery health, privacy, and convenience. LCP Delta’s annual EV Driver Survey provides critical insights into these attitudes, supporting clients in designing propositions that build trust and engagement.