Piclo, a leading UK flexibility services marketplace, announces the extension of its collaboration with the National Energy System Operator (NESO) to continue to support their Local Constraint Market (LCM) until January 2027.
The LCM plays a critical role in managing the transmission constraint between Scotland and England by enabling flexible energy resources to support the electricity grid in real time. Since its launch in 2023, the LCM has seen significant growth and innovation in its operation and participation model.
Over the past year, the LCM has:
- Enabled 7x growth in market value from Q1 to Q2 2025
- Introduced features such as ABSVD opt-out: enabling providers to ‘opt-out’ of ABSVD, and be paid the wholesale DA price in addition to their bid price
- Supported asset-level metering, allowing participation from meters at asset level, breaking down barriers of access to data
- Attracted a growing ecosystem of Flexibility Service Providers, including Axle, CUB, EDF, Ovo and Octopus
This extension reflects the LCM’s success and its increasingly important role in enabling a flexible, resilient, and decarbonised electricity system.
James Johnston, CEO and Co-founder, Piclo, said, “The LCM proves that local, dynamic flexibility markets are not only viable but essential in supporting the energy transition. We look forward to working with NESO to enable even more participation and unlocking greater value for consumers and the system.”
NESO and Piclo will also collaborate with Distribution System Operators (DSOs) to further integrate LCM learnings into wider market frameworks and enhance value across the system.
Get involved
The LCM remains open to participants with flexibility assets in Scotland. Whether you manage EV charging, residential demand, or distributed generation, the LCM offers an opportunity to earn revenue whilst supporting grid resilience and decarbonisation.
🔗 For more details and to sign up, visit: https://www.neso.energy/industry-information/balancing-services/local-constraint-market
