5 ways the UK can supercharge demand-side flexibility

When the National Energy System Operator (NESO) published its Clean Power 2030 Report towards the end of last year, it set out clear advice to the Government that more demand-side flexibility would be needed for the UK to reach its net zero goals. 

The Government was quick to respond, publishing its own Clean Power Action Plan with further recognition of the importance of flexibility, saying: “A significant increase in short-duration flexibility of 29-35 GW across battery storage, consumer led flexibility and interconnection capacity from 2023 levels will reduce the amount of more costly generation and associated network infrastructure that needs to be built, whilst maintaining security of supply.” 

More flexibility offers the twin benefits of helping the UK make the most of clean electricity offered by increased renewable generation, while avoiding some of the expense of building new infrastructure to accommodate it. 

As a leading UK energy supplier on the front line of the energy transition, we’re constantly working at the meeting point between customers, operators, regulators, and government, which means we hold a unique position and insights into how more demand-side flexibility can be incentivised, established, and optimised. 

Here are five ways that – between suppliers, policymakers, and regulators – we can do just that: 

1. Including battery storage as part of ECO5

Domestic batteries are an effective way of helping households use electricity more flexibly and reducing their energy bills as a result. By including them among the energy efficiency measures to be offered under the upcoming replacement to the Government’s existing Energy Company Obligation (ECO4) scheme next year, policymakers can ensure more flexible energy use from consumers while helping us tackle fuel poverty. 

2. Committing to half hourly settlement 

Giving households clearer price signals is key to encouraging flexible energy use. By ensuring the rollout of half-hourly settlement is not delayed, policymakers can unlock smarter electricity consumption and give suppliers the tools we need to offer more flexible tariffs, empowering consumers to shift their use to times when electricity is cheaper and cleaner. 

3. Rebalancing policy costs 

Right now, electricity bears a disproportionate share of the levies used to support vulnerable customers and sustainability initiatives, which makes low-carbon technologies like heat pumps and electric vehicles more expensive to run. By taking action to reduce the policy cost component of electricity prices, policymakers can increase the appeal to households of investing in and using more flexible, cleaner technologies. 

4. Improving interoperability 

Flexible energy systems work best when devices and data can be used seamlessly across energy suppliers, manufacturers, and service providers. Ensuring interoperability right across the flexibility value chain will give consumers confidence, unlock innovation, and help grow a truly competitive flexibility market that delivers value for all. 

5. Accelerating digitalisation 

Transparent and accessible energy data is essential for delivering a smart, flexible system. By pushing forward ongoing digitalisation initiatives that empower consumers to share their data safely and easily, policymakers can lay the foundations for flexibility to flourish across the energy sector. 

Each of these five steps is achievable for policymakers without the need for significant Government spending, and some measures could save money or even generate revenue by harnessing more efficient technologies, streamlining the energy system, and creating new opportunities for innovation through data. 

Especially with those measures that would provide greater incentives for customers to adopt energy-saving technologies – such as committing to half-hourly settlement, rebalancing policy costs, and improving services through interoperability and digitalisation. At E.ON UK we have  the experience, expertise, and supply chains required to put more devices in homes, and more flexibility into the system. 

We know it’s on us to make new energy work, and with continued help from policymakers to unlock greater opportunities for flexibility, we look forward to doing even more. 

Find out more about how we’re working to increase the UK’s demand-side energy flexibility here.