By Peter Stanley, Chief Executive, Elexon
Last September, Ratcliffe-on-Soar, the last coal-fired power station in Britain, shut down after 60 years, ending over 140 years of coal-fired generation in the UK.
It marked the end of an era – and the beginning of something truly colossal.
The latest Digest of UK Energy Statistics confirmed what many in the sector have sensed for months: renewable electricity generation in the UK has reached a historic high.
For the first time in 2024, renewables supplied 50.4% of the country’s electricity.
These are impressive milestones. But while they are to be celebrated, they are also a stark reminder of the job that still needs to be done: A renewables-led system must be met by one that is flexible, responsive, supporting the government’s ambition for energy independence and driving economic growth.
That’s where flexibility comes in – and why the Department for Energy Security and Net Zero’s (DESNZ) Clean Flexibility Roadmap is a landmark moment.
Embedding flexibility in the energy transition
The Clean Flexibility Roadmap lays out a clear and necessary path: flexibility must be built into every level of our electricity system.
Elexon fully embraces that vision. As facilitator of local flexibility markets and an independent manager of wholesale electricity market arrangements, we are seeking to put the market reforms in place to make that ambition a reality.
Elexon is also delivering the Flexibility Market Asset Registration, which will create asset visibility across Great Britain, and act as the single source of the truth for details of all assets participating in multiple flexibility markets.
We published our Flexibility Vision and Action Plan, setting out how we will collaborate with the DESNZ, Ofgem, the National Energy System Operator (NESO), and industry to deliver a five-fold increase in consumer-led flexibility-(CLF) up to 10 – 12GW by 2030. This is recognised as being one of the most challenging elements of the Clean Power 2030 Action Plan.
DESNZ’s decision to appoint a Flexibility Commissioner to the Clean Power 2030 Advisory Board is a timely and welcome move, supporting the leadership that is required to enable this.
The government’s Clean Flexibility Roadmap recognises the key role Elexon plays as a market facilitator and outlines our commitments.
We are on track to publish the Flexibility Market Rules and a detailed delivery plan for 2026/26 by the end of 2025.
This plan will set out the next steps to ensure alignment between NESO and DSO markets for flexibility service providers.
Delivering Market-wide Half Hourly Settlement
One of the most transformative elements of the Clean Flexibility Roadmap and key enabler of the flexibility is Market-wide Half Hourly Settlement (MHHS).
Elexon is delivering the industry-led implementation programme.
We will begin migrating meters to the new arrangements in October 2025, and by October 2026, we expect around 80% of all meters to have been transitioned.
Energy suppliers will use half-hourly settlement data to roll out a range of new flexibility tariffs, supporting households and businesses to have a clearer view of how they use their energy and shift their usage during peak times.
It will unlock more granular consumption data, empowering energy suppliers and innovators to create dynamic pricing models that reward customers for using energy when it’s cheaper and cleaner.
Once MHHS goes live, Elexon will process approximately 500 billion readings per year.
Supporting more consumers to use electricity at off-peak times will boost the efficiency and resilience of the electricity network and Ofgem has estimated somewhere between £1.6 – £4.5 billion of benefits by 2045.
Elexon is working closely with Ofgem to ensure MHHS delivers a wide set of consumer-led flexibility solutions.
We expect Ofgem to publish proposals this summer for changes to the licence conditions for suppliers and Distribution Network Operators (DNOs), to support the MHHS implementation plan. These changes are expected to be in place by the end of 2025.
At the same time, Ofgem will review whether the current data consent arrangements – under which consumers can opt-out of having their half-hourly data accessed for settlement purposes – presents a barrier to delivering the benefits of MHHS.
A decision is expected by autumn 2025.
Looking ahead
As outlined in the Clean Power Plan, the Government, through it’s Smart and Secure Electricity Systems (SSES) programme, is establishing a framework for cybersecurity, technical interoperability, and consumer protection to support the development of a mass market in consumer-led flexibility enabled by the load control of energy smart appliances like heat pumps and household batteries.
The Government is currently consulting on its minded to position that Elexon takes on the enduring governance of SSES.
Combining this new role for the SSES programme, which leverages our governance and market expertise to drive the alignment of security and interoperability standards across energy smart appliances, with our remit as market facilitator, enables us to support the growth of consumer-led flexibility across both local and national flexibility markets. This integrated approach ensures that flexibility is delivered in a secure, interoperable, and scalable way, unlocking its full potential for the energy system and consumers alike.
Implementing the Clean Flexibility Roadmap will require a lot of effort, cooperation and sector-wide dedication to make the vision a reality.
We also welcome the creation of a dedicated flexibility division within DESNZ. Coordinated leadership will be vital to ensure policies, regulations, and market arrangements all support the right investment signals and remove barriers to participation.
At Elexon, we’re committed to implementing the reforms that will bring about the necessary changes and making these a reality.
From MHHS to digital platforms and improved market coordination, we’re working to build the infrastructure and market conditions that are needed so that flexibility can thrive and we’re determined to play our part in helping the whole system move forward.
Britain has what it takes to lead the way on clean flexibility. Let’s make it happen.
Peter Stanley is Chief Executive of Elexon, a trusted and independent delivery partner, recognised by government, Ofgem and industry for our reliability and technical excellence. With over two decades of experience managing market settlement and code governance, Elexon continues to deliver the reforms and infrastructure that keep the market working.
