Due to rising fuel costs, the substantial price for CO2 emissions and decreasing wind power costs, wind power might become the least expensive source of power for an increasing number of power systems. This poses the questions of how wind power might change optimal investments in other forms of power production and what kind of means could be used to increase power system flexibility in order to incorporate the variable power production from wind power in a cost-effective manner. We have analysed possible effects using an investment model that combines heat and power production and simulates electric vehicles. The model runs in an hourly time scale in order to accommodate the impact of variable power production from wind power. Electric vehicles store electricity for later use and can thus serve to increase the flexibility of the power system. Flexibility can also be upgraded by using heat storages with heat from heat pumps, electric heat boilers and combined heat and power (CHP) plants. Results show that there is great potential for additional power system flexibility in the production and use of heat. (C) 2009 Elsevier Ltd. All rights reserved.