Unlocking the power of decentralised energy to create a smarter, greener, and more resilient grid for the future.
Imagine the electricity grid as a road network. Traditionally, large power stations pushed power out in one direction. However, with the rise of renewables like solar panels and new demands from electric vehicles (EVs), we now have energy flowing in multiple directions, creating "constraints" or traffic jams on local networks.
A local flexibility market is an innovative solution where local grid operators (Distribution Network Operators, or DNOs) pay businesses and households to briefly change their energy usage—either by reducing demand or exporting stored power—to help balance the network. This is far cheaper and faster than building new substations or laying more cables.
Understanding the potential flexibility from aggregated household demand is crucial. Use our new GB Household Demand & Flexibility Tool to model demand shapes and simulate the revenue potential of residential batteries in local markets.
Launch Flexibility ToolThe DNO identifies a future network constraint and posts a requirement on a marketplace platform (e.g., Piclo).
As an aggregator, you register on the platform and submit technical specifications for your aggregated assets.
Analyse the tender and formulate competitive Availability (£/MW/h) and Utilisation (£/MWh) bids.
Upon winning, receive dispatch signals and use your DERMS to automatically control the assets in your portfolio.
Provide accurate metering data for Measurement, Verification, and Settlement (MVS) to ensure timely payment.
DSOs are increasingly turning to market-based solutions to manage network constraints and defer costly infrastructure upgrades. This creates a significant revenue opportunity for aggregators who can deliver reliable, location-specific flexibility services.
Success requires sophisticated technical and commercial capabilities to translate complex DSO requirements into actionable, automated dispatch instructions for your Distributed Energy Resource (DER) portfolio.
The UK is at the forefront of developing these markets, driven by ambitious net-zero targets and regulatory support from Ofgem. A key part of this is the evolution of DNOs into more active Distribution System Operators (DSOs), who actively manage energy flows using flexibility as a core tool. All of the UK's DNOs are now procuring flexibility, with the market projected to expand significantly.
While the potential is enormous, challenges remain in standardising market rules and lowering barriers to entry for smaller participants. Looking forward, the market will become more sophisticated, with greater automation and deeper integration between local and national markets. Local flexibility is a fundamental building block of the smart, decarbonised grid of the future.