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.
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).
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
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.
“Domestic” refers to a premises at which a supply of electricity is taken wholly or mainly for a domestic purpose.
“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 data which shows the level of demand side participation in all NESO markets and how this may change in the future.
This is the first iteration of our Demand Side Flexibility participation in NESO Markets dataset which has been compiled using existing information from NESO systems and through engagement with industry participants. We are keen to work with industry to ensure this accurately reflects the current level of demand side flexibility participation in NESO markets and establish a clear process for adding new units going forward.
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 | Dec 2024 | Download |
| You Said, We Did (summary of June 2024 Call for Input feedback) | Dec 2024 | Download |
We hosted a question and answer session on 29 January. Watch the webinar recording and download the Q&A Document below.
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.
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.
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