The UK government’s July 2025 Flexibility Roadmap sets out a clear vision: demand-side flexibility will be central to reaching the country’s net zero goals. Paul Troughton, senior head of regulatory affairs at Enel X, explains the flexibility market, and highlights how the industrial and commercial sectors are key to hitting the UK’s targets.
The UK’s electricity system is undergoing a remarkable transformation. Generation has always been the main controllable resource for balancing the network, with the system operator adjusting the amount of generation to match variations in demand. But as demand increases, and fossil-fuelled generation continues to be replaced by renewables, this traditional approach is no longer adequate.
Much more flexibility will be needed on the grid of tomorrow, and the bulk of it will be provided by adjusting demand. With the right market frameworks, some of the money that would have been spent on additional supply capacity can instead be used to incentivise flexibility among electricity customers.
This demand-side flexibility is not new. In Great Britain, after reforms over the last decade or so, customers can participate in various flexibility programmes including the balancing mechanism, the Capacity Market, ancillary services, and distribution constraint management – either directly or by working through the aggregator of their choice. Flexibility is a proven resource, already contributing to grid stability in many countries across the world.
So, the government’s Clean Flexibility Roadmap is right to put demand-side response at the heart of net zero. Flexibility is no longer optional: it is essential for a secure, affordable, and decarbonised energy system.
To 2030, and a decarbonised grid
The Clean Power 2030 action plan sets an ambitious pathway to a decarbonised electricity network by 2030. The National Energy System Operator (NESO) projects that to meet this, the UK will need 25-45 gigawatts (GW) of within-day flexibility, mainly from smart electric vehicle charging, vehicle-to-grid technology, electric heat, smart appliances, and battery storage. That’s a seismic shift from the traditional centralised system of mostly fossil-fuelled power plants, to a distributed, renewably powered system enabled by millions of commercial, industrial, and residential sites.
This transformation requires a new approach to planning and operating the power system, putting customers’ capabilities and interests at its heart. While much of the government’s messaging has centred on flexible demand in a domestic setting, commercial and industrial customers will play a critical role. Their participation not only supports decarbonisation, it boosts the competitiveness of British industry.
Commercial and industrial organisations are already unlocking valuable revenues by participating in the UK Capacity Market. Their flexibility earnings don’t just strengthen the grid: they also support businesses on their own decarbonisation journeys.
Industrial and commercial flexibility is one of the UK’s untapped strengths. These businesses already have the scale, assets and processes in place to deliver meaningful system services; unlocking their participation at speed will be essential if the UK is to hit its 2030 targets.
Governance and barriers
The roadmap takes important steps forward on governance, including:
- Establishing a Flexibility Commissioner
- Creating a dedicated Electricity System Flexibility division within the Department for Energy Security and Net Zero (DESNZ)
- Introducing monitoring mechanisms like an Annual Roadmap Forum and quarterly workshops
These are welcome measures. However, with 2030 only five years away, the government must also drive changes forward by setting interim milestones. For example, half the required capacity should be achieved by 2027, and key metrics of the transformation should be publicly available.
Many of the barriers to flexibility participation are longstanding and well-documented. The priority now is to move from analysis to action, accelerating reforms, and enabling real-world participation.
For non-domestic flexibility in particular, the focus should be on:
- Removing barriers that prevent entry into existing markets
- Avoiding siloed programmes that could fragment resources
- Recognising the value of aggregators, who combine diverse assets into effective portfolios
I’m proud to have been involved in the story of flexibility within the UK. Enel X’s recent P415 proposal, now adopted by Ofgem, allows flexible assets to participate directly in the wholesale market – rather than organisations being reliant on the offering of their energy supplier.
This change provides a clear example of how innovation and collaboration can unlock value. Indeed, both are key to building in the flexibility and resilience that power networks need. De-carbonised grids are essential not just for eliminating the emissions from electricity use, but as a tool to decarbonise the other major energy users: transport and heat. Flexibility in the power network is fundamental to meeting the ambitious 2030 targets, but even more so if the UK is to build an energy system fit for 2050 and beyond.
