Enabling Demand-Side Flexibility in NESO Markets | National Energy System Operator

Enabling Demand-Side Flexibility in NESO Markets | National Energy System Operator Show/Hide Menu Toggle Add to favourites Close tooltip Sign in to add this page to your favourites Sign in or register Show favourites Close Close tooltip Sign in or register to manage your favourites Sign in or register Help You are now signed in Visit My NESO account to view and manage your dataset subscriptions. Maybe later Go to your account Enabling Demand-Side Flexibility in NESO Markets What is the Enabling Demand-Side Flexibility Programme? In December 2024, we published a report entitled Enabling Demand-Side Flexibility in NESO Markets which set out our vision for demand-side flexibility participation in our balancing services markets. Since, lots has changed in this space with the publication of the Clean Power Action Plan and Clean Flexibility Roadmap; big strides are already being made in several areas across industry to enable demand-side flexibility participation in markets. Following on from the report, our focus now turns to delivering and tracking progress on the actions set out across NESO. The Enabling Demand-Side Flexibility Programme will highlight where progress is being made and where gaps still remain. This programme will remain closely linked with NESO’s Routes to Market Review, as well as the actions we are responsible for in this space as part of the Clean Flexibility Roadmap. Clean Power 2030 Clean Flexibility Roadmap Enabling Demand-Side Flexibility Programme Routes to Market Review Sets out plans for a two to three-fold increase in clean flexibility capacity, to a range of 51GW to 66GW, by 2030. By 2030, demand flexibility from consumers in the Clean Power 2030 pathways reaches 10-12 GW (via both implicit and explicit markets). How do EDSF, Routes to Market Review and Clean Flexibility Roadmap all fit together? The Clean Flexibility Roadmap sets out the government’s vision for flexibility required for CP30. The roadmap includes actions for government, NESO and Ofgem to enable flexibility, including from demand-side participants. This programme is NESO’s organized effort to unlock participation from demand-side flexibility in NESO markets and achieve coherency, competition and coordination. Scope: All NESO energy services. Voltage, stability and restoration are out of the scope this programme. The scope was updated in 2025 to incorporate all the markets and consumer led flexibility actions in the Clean Flexibility Roadmap. Routes to Markets review is part of the EDSF programme and aims to increase competition. This initiative addresses the need to create a level playing field by identifying and removing barriers to NESO markets where feasible. Scope: Identified barriers Priorities of barriers Progress of removing barriers Demand-Side Flexibility (DSF) Definitions What is Demand-Side Flexibility (DSF)? Demand-Side Flexibility (DSF) refers to energy flexibility spanning all consumer groups - domestic, industrial, commercial, and public sector - and operates at both transmission and distribution levels. It involves technologies and assets that can increase, decrease, shift, or store electricity. DSF includes load shifting via behavioural change or automation, as well as the use of on-site, behind the meter generation and storage. What is Domestic Demand-Side Flexibility? “Domestic” refers to a premises at which a supply of electricity is taken wholly or mainly for a domestic purpose. What is Industrial and Commercial Demand-Side Flexibility? “Industrial and Commercial” refers to a premises at which a supply of electricity is not taken wholly or mainly for a domestic purpose. Tracking Demand-Side Flexibility participation in NESO Markets It is important to be able to evidence the impact of the market reforms and removal of barriers for demand-side flexibility. Hence, we have committed to publishing quarterly updates showing the level of demand-side participation in all NESO markets and how this may evolve over time. Data relies on self reported confirmations, and gaps or inconsistencies may occur due to non response, evolving portfolios, or differing interpretations of DSF status. NESO has taken steps to verify submissions and will continue refining the dataset. As participation grows and methodologies improve, it will become increasingly robust and reliable. We are keen to work with industry to ensure this accurately reflects the current level of demand-side flexibility participation in NESO markets and to establish a clear process for adding new units going forward. Asset owners who have not yet confirmed their status are encouraged to contact us to ensure comprehensive representation in future editions. Please reach out to [email protected] Enabling Demand-side Flexibility in NESO markets report This Enabling Demand-side Flexibility in NESO markets report (originally entitled Flexibility Market Strategy), is a response to the urgent need to mobilise demand-side flexibility in NESO markets as Great Britan shifts towards a greener future. Demand-side flexibility is essential in our decarbonisation journey to clean power by 2030 and net zero by 2050. Following a period of industry Call for Input in June 2024 as ESO, where we received valuable feedback to guide this piece of work, we now progress to further defining our focuses and planning in detail alongside partners. In this document, we explore the no regret market reform actions which can be taken in the mid-term to sharpen the explicit market signals, while awaiting the enduring market arrangements that will be established by Review of Electricity Market Arrangements (REMA) and the implicit market signals enhanced by Market-wide Half Hourly Settlement. This work clarifies our vision and the outcomes we want to achieve pre-REMA, as well as setting out a series of objectives that have to be met to deliver the outcomes. Document Library Document Title Published Download Link Enabling Demand-Side Flexibility in NESO Markets December 2024 Download You Said, We Did (summary of June 2024 Call for Input feedback) December 2024 Download Enabling Demand-Side Flexibility Progress Update December 2025 Download We hosted a question and answer session on 29 January. Watch the webinar recording and download the Q&A Document below. Watch Webinar Download Q&A's Contact us We’re also open to 1-1 sessions, enabling you to ask us your questions directly. Please email us with your questions and availability. Contact us Other useful links For more information about participating in NESO services, as well as our call to industry video, please visit our Power Responsive onboarding page . Please sign up to our newsletter so that you are the first to hear our announcements and any news. Sign up to our newsletter logo--facebook