Ofgem has confirmed Elexon as market facilitator for local energy flexibility with a “mission is to spearhead and enable” greater flexible energy use across electricity distribution networks.
Flexible energy use will be required as the country becomes increasingly dependent on intermittent low carbon generation such as wind and solar power. At the same time electricity demand is expected to rise by 50 per cent by 2035, with increasing uptake of EVs and heat pumps anticipated.

Elexon will act as a single, expert entity that will work closely with Ofgem, the ESO (Electricity System Operator), ENA (Energy Networks Association), local networks, and Flexibility Service Providers (FSPs) to drive alignment between local and national flexibility markets and remove any barriers.

Ofgem has also launched a consultation on a proposed common Flexibility Market Asset Registration (FMAR) solution. The system would provide a single point of registration for flexible consumer assets such as EV (Electric Vehicle) chargers, heat pumps and home battery storage systems to participate in all local and national flexibility markets. This would move away from the present system where Flexibility Service Providers (FSPs), who aggregate assets on behalf of consumers, must sign up multiple times for each individual market.

The steps outlined could help achieve the Government’s goal of clean power by 2030 and could also contribute to an estimated £30-70bn savings form flexibility by 2050, which would reduce bills for all consumers. These savings would be achieved through more efficient use of the energy system through flexibility, reducing the need to build new energy generation and new electricity network.

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