Powering the Net-Zero Future: How energy flexibility benefits businesses and the grid

Energy flexibility and its impact on the Net-Zero transition 

As the UK progresses towards a net-zero economy, energy flexibility is becoming a crucial element in this transition. Flexibility has the potential to save up to £14.1 billion annually by 2040, translating into lower energy bills and a more efficient use of renewable energy. This approach not only helps reduce energy waste but also enhances the overall reliability of our energy system. 

The recent ADE report, ‘Demanding More,’ outlines key recommendations for policymakers, particularly the National Energy System Operator (NESO), to improve energy demand management. It emphasises the need for inclusive market designs that incorporate all flexibility technologies, avoiding unnecessary costs by focusing on flexible demand rather than subsidising early-stage technologies. The report also highlights the importance of making it easier for more participants to engage in flexibility markets, which is vital for NESO to balance a clean and decarbonised system effectively. 

How businesses can benefit from flexibility 

For businesses, embracing energy flexibility can lead to significant benefits. By adjusting how and when energy is consumed, businesses can lower their energy costs, particularly during peak periods or when renewable energy is abundant. This not only helps in reducing operational expenses but also enhances overall efficiency and sustainability. Engaging in flexibility markets can improve a company’s environmental credentials and help it stay ahead of forthcoming regulations. 

To capitalise on these advantages, businesses should explore the various flexibility options available and consider participating in market initiatives. As part of ADE’s mission to champion flexibility, the ADE Research team has been collaborating closely with UK Power Networks Distribution System Operator (DSO). Together, they have developed the ‘Welcome to Local Flexibility’ guide, which highlights key insights and data from UK Power Networks’ flexibility activities. This guide is designed for anyone interested in flexibility, particularly those looking to engage with distribution flexibility markets but who may be unsure where to start. It provides an overview of how flexibility works and addresses common myths about navigating the market. 

The role of UK Power Networks and a future-proof energy market 

UK Power Networks continues to exceed customer expectations by providing personalised support that ensures all customers understand the requirements and benefits and receive the help they need to participate successfully in the flexibility market. Through initiatives like the day-ahead flexibility market, launched in April 2024, UK Power Networks is making it easier for a diverse range of participants—from businesses to residential consumers—to engage in flexibility markets and reap financial benefits. Their £410 million commitment to flexibility benefits over 2023-2028 further demonstrates their dedication to advancing the flexibility market, which is crucial for creating a more sustainable and resilient energy system. 

Looking ahead, ADE will continue to focus on innovations that support flexibility. Later this year, we will explore how advanced heating technologies and heat networks can further alleviate grid pressures, reduce costs, and support decarbonisation efforts.  

For more insights on how flexibility can benefit your business and to explore further opportunities, join us at the ADE’s Decentralised Energy Conference on 30 October.