On-Boarding Flexibility

This page is here to help you get started with NESO’s flexibility services. Whether you're exploring your options, preparing to register, or already working with an aggregator, our Onboarding Support Team is here to guide you every step of the way.

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NESOs On-Boarding Support Team

We understand that entering the world of energy flexibility can be complex, especially for first-time providers. That’s why our team is available to answer your questions, explain service requirements, and help you navigate the registration process. You can reach out to us via email or arrange a one-to-one meeting, where we’ll be happy to walk you through the process and support you in unlocking the full value of your assets. To gain further insight, please watch the call to industry video available.

Get in touch:

Email: [email protected]

Phone: 07583026114

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.

Why Participate in Demand Side Flexibility?

Demand Side Flexibility (DSF) is your opportunity to turn energy assets into income while helping build a cleaner, more resilient electricity system. Whether you're a business with significant energy resources or an aggregator managing domestic technologies like EVs and home batteries, DSF lets you respond to grid needs by shifting, storing, or reducing electricity use, earning revenue, improving efficiency, and supporting the transition to net zero.

Getting involved is easier than you might think. Individual and smaller scale asset owners can partner with aggregators who handle the complexity and unlock access to national services, while larger organisations may have the scale to register directly with NESO. Either way, DSF puts you at the heart of a smarter energy future, one where flexibility is rewarded, carbon is reduced, and everyone benefits

What is an aggregator?

If you have smaller energy assets like EVs, home batteries, or smart appliances or prefer not to manage the complexity of direct registration, you can participate in NESO services through an aggregator. Aggregators are third-party companies that combine flexibility from many individual assets into a single portfolio, meeting the technical and commercial requirements to access national services. They handle the coordination, compliance, and communication with NESO, making it easier for you to unlock value from your assets without needing to engage directly.

Why NESO Services Exist?

The electricity grid must be balanced in real time and supply and demand must match every second of the day. As more renewable generation enters the system and energy use becomes more dynamic, maintaining this balance becomes increasingly complex. NESO services exist to ensure that the grid remains stable, secure, and efficient, even as conditions change rapidly.

To do this, NESO has developed a range of “services” (also referred to as “markets”), each designed as a specific tool to solve a particular challenge. Some services respond instantly to frequency changes, others help manage short-term peaks in demand, and some are used to relieve local network constraints. This toolbox approach ensures that the right type of generation or demand side flexibility is available at the right time, whether it's from large industrial sites, domestic batteries, or aggregated EVs. By participating, your assets become part of this finely tuned system, helping keep the lights on while earning value for their contribution.

What NESO services are available to participate in?

Demand Flexibility Service

The Demand Flexibility Service (DFS) is the most accessible entry point for flexibility providers, especially industrial and commercial sites and those aggregating domestic assets like EVs, batteries, and smart appliances. It’s designed to reward consumers for reducing or shifting their electricity use during specific periods when the grid is under stress.

DFS is a scheduled service, meaning NESO issues advance notifications when flexibility is needed. Participants either directly or via an aggregator, respond by lowering demand or shifting usage to a different time. This helps relieve pressure on the grid, avoids costly interventions, and supports system stability.

Key benefits of the Demand Flexibility Service:

  • Low entry requirements: ideal for domestic aggregators and smaller commercial sites
  • Simple participation model: no need for real-time control or complex telemetry
  • Financial rewards: paid for delivered flexibility during service windows

DFS is a great starting point for providers looking to engage with NESO services, build experience, and begin unlocking value from their flexible assets.

Demand Flexibility Service (DFS)

Reserve Services

Slow Reserve

Slow Reserve provides support over longer timeframes, typically tens of minutes to hours. It’s suited to assets that may need more time to ramp up or down, such as commercial HVAC systems, industrial processes, or aggregated domestic loads with slower flexibility profiles. Entry requirements are generally lower than for frequency response services and participation can be scheduled or event-driven.

Fast Reserve

Quick Reserve is activated with short notice, typically within minutes, and requires assets to respond rapidly. It’s ideal for technologies like batteries, EVs, or flexible industrial loads that can deliver fast, reliable changes in output or consumption. Aggregators can bundle domestic assets to meet response thresholds, making this service increasingly accessible.

Both services offer:

  • Revenue for availability and delivery
  • Opportunities for aggregated participation
  • A role in supporting grid resilience during unexpected events

Reserve services

Capacity Market

The Capacity Market is designed to ensure there's always enough electricity available to meet peak demand, especially during unexpected system stress events. By committing your assets to be available when needed, you help safeguard the grid and avoid costly emergency interventions.

What makes the Capacity Market particularly attractive is the availability payment: you’re paid simply for being ready to respond, even if your assets aren’t called upon. This creates a stable and predictable revenue stream, making it a valuable option for most asset types. And importantly, participation in the Capacity Market doesn’t limit your options, you can still access other NESO services like the Demand Flexibility Service, allowing you to stack value across multiple flexibility opportunities.

Capacity Market

Local Constraint Market

The electricity grid must operate reliably not just nationally, but locally, and in some areas, especially those with high renewable generation or limited infrastructure, local constraints can emerge. NESO’s Local Constraint Management Market addresses these challenges by calling on flexibility providers in specific geographic zones to adjust their electricity use or output.

Participation depends on where your assets are located. Only those within identified constraint zones are eligible. If your assets qualify, you can earn revenue by helping to relieve local congestion and support grid stability. Importantly, this service pays for both turn-down (reducing consumption or increasing export) and turn-up (increasing consumption or reducing export), meaning you can be paid for using electricity when it helps the system. This makes it especially attractive for technologies like domestic batteries, EVs, and smart appliances.

*To qualify for this service, assets must be located around the England/Scotland border.

Local Constraint Market (LCM)

Balancing Mechanism

The Balancing Mechanism (BM) is one of NESO’s core tools for keeping the electricity system stable in real time. When supply and demand don’t match due to sudden changes in generation, weather, or consumption, NESO uses the BM to call on registered providers to adjust their output or demand, often within minutes.

By participating in the BM, flexibility providers can offer their assets to either increase or decrease electricity usage or generation when the system needs it. This service is dispatchable, meaning NESO sends instructions as needed, and providers are paid for responding. The BM offers strong financial potential, especially for assets that can respond quickly and reliably such as batteries, EVs, and flexible industrial loads.

While the BM has more technical and operational requirements than services like DFS, it also offers greater earning potential and frequent opportunities to be called upon. Aggregators can also help asset owners simplify access to the BM by managing the complexity of registration and regular dispatching.

Balancing Mechanism (BM)

Response Services

NESO’s Response Services are designed to help maintain the grid’s frequency close to its target of 50Hz, a critical part of keeping the electricity system stable. These services rely on fast-acting flexibility that can automatically respond to small changes in frequency, often within seconds.

Dynamic Containment (DC) is the first line of defence when frequency moves outside safe limits. It requires rapid, reliable response from assets like batteries and is typically the most demanding in terms of performance and telemetry.

Dynamic Moderation (DM) helps manage frequency within the normal operating range, smoothing out fluctuations caused by everyday changes in demand and generation. It’s slightly less intensive than DC but still requires fast, automated response.

Dynamic Regulation (DR) works continuously to fine-tune frequency, keeping it as close to 50Hz as possible. It’s ideal for assets that can deliver precise, automated and sustained adjustments over time.

These services offer strong financial returns for providers with high-performance assets and advanced control systems. While they are more technically demanding than other NESO services, they play a vital role in keeping the grid stable and aggregators can help unlock access for portfolios of suitable domestic or commercial technologies.

Frequency response services

Wholesale Market Participation

Flexible assets can respond to electricity price signals in the wholesale market, shifting consumption or generation to times when prices are high or low. This allows providers to optimise energy use for financial gain, especially when combined with NESO services like DFS or Reserve.

However, access to the wholesale market is limited to licensed suppliers and aggregators registered as Virtual Lead Parties (VLPs). Aggregators can trade in the Wholesale Market on behalf of smaller asset owners, making it more accessible than it may first appear.

DNO Flexibility Services

Distribution Network Operators (DNOs) also procure flexibility to manage local grid constraints and avoid infrastructure upgrades. These services are often location-specific and may have lower entry requirements than national services. Participating in DNO schemes can complement NESO services, offering additional revenue streams for assets in the right areas and helping support local grid resilience.

To explore these opportunities, you’ll need to visit the website of the DNO operating in your area, as each one runs its own flexibility programmes, platforms, and procurement processes. Determine which DNO area your assets are in using this page.

How to Register for NESO Services

If you operate large-scale assets or have the technical capability to meet NESO’s requirements (such as metering, telemetry, and performance standards), you can register directly. This route gives you full control over how your assets participate and allows access to the full range of NESO services, including the Balancing Mechanism and Response Services. You’ll need to complete asset registration, meet service-specific criteria, and manage dispatch and settlement processes.

If you're ready to register directly with NESO, here’s what the process typically involves:

  1. Understand Service Requirements
    Review the technical and operational requirements for the NESO services you’re interested in, including metering, telemetry, response times, and performance standards. These can be found in the ENA ON All Flexibility Product Technical Requirements.
  2. Asset Qualification
    Ensure your assets meet the minimum criteria for the chosen service(s). This may include capacity thresholds, location eligibility (for local services), and dispatch capabilities.
  3. Register as a Market Participant
    You’ll need to complete formal registration with NESO, entering into service contracts and agreeing to settlement arrangements.
  4. System Integration
    Implement the necessary systems to communicate with NESO, including real-time data sharing, dispatch instructions, and performance monitoring.
  5. Testing & Validation
    NESO may require testing to confirm your assets can deliver the expected flexibility reliably and safely.
  6. Go Live
    Once approved, your assets can begin participating in NESO services and earning revenue for their contributions.

To begin registration please contact: [email protected]

If you would like further support on registration, get in touch with our on-boarding support team

Email: [email protected]

Phone: 07583026114

If you have smaller assets such as domestic batteries, EVs, or flexible commercial loads, or prefer not to manage the complexity of direct registration, you can work with an aggregator. Aggregators bundle flexibility from multiple sources into a single portfolio, handle all technical and commercial requirements, and register with NESO on your behalf. This makes it easier to access services like DFS, Reserve, and even the Capacity Market, without needing to navigate the full registration process yourself.

If you’re looking to participate in NESO services and prefer a streamlined approach, without managing the complexity of direct registration, working with an aggregator is a practical and proven route. Here’s how to get started:

  1. Identify Suitable Aggregators
    Aggregators vary in their service offerings, technologies supported, and commercial models. NESO We cannot recommend specific companies, but we encourage providers to consider aggregators that are part of a code of conduct scheme such as Flex Assure. Aggregators that are members of Flex Assure must meet a minimum set of standards around transparency, data handling, and customer protection. You can view the full Flex Assure membership list here.
  2. Understand the Commercial Model
    Aggregators typically offer revenue-sharing arrangements based on the flexibility your assets provide. Be sure to review contract terms, payment structures, and service commitments.
  3. Asset Onboarding
    The aggregator will guide you through asset registration, technical setup, and any required testing. They’ll also manage dispatch instructions and performance monitoring on your behalf.
  4. Start Participating
    Once onboarded, your assets can begin contributing to NESO services, earning revenue while supporting grid stability and decarbonisation.

Flex Assure Aggregator Membership List 

Navigating NESO services for the first time can feel complex, but you don’t have to do it alone. Our dedicated Onboarding Team is here to support you at every stage of the process. Whether you're registering directly or working through an aggregator, we’re happy to guide you through the requirements, answer your questions, and help you understand which services best suit your assets.

You can email the onboarding team to ask questions or arrange a one-to-one meeting. We’ll walk you through the process step-by-step, helping you get set up with confidence and clarity. Whether you're just exploring your options or ready to go live, we're here to make your onboarding experience as smooth and supportive as possible.

Get in touch: [email protected]

Phone: 07583026114