Details

ToThe Flex ensureMarkets aUnlocked Innovation cost-effective,Programme secureran from 2023 to 2025. See details of the competition guidance.

The programme committed up to £2.60 million to support projects that designed and netdeveloped zeroinnovative energytechnical system,solutions weto facilitate system-wide needcoordination, standardisation and significantrevenue levelsstacking ofacross multiple flexibility frommarkets technologies(markets suchwithin aswhich electricityflexibility storage,can smartbe chargingbought ofor electricsold) to vehiclesallow a more diverse and flexiblecompetitive heatingmarketplace, systems.unlocking flexibility. 

Programme structure 

TheseThe technologiesprogramme needconsisted toof be2 ablephases: 

Phase 1 - up to access£600,000 funding marketsfor 3 feasibility easilystudies to anddevelop berobust rewardedtechnical specifications for proposed technical solutions. See details of the servicesfunded theyprojects canfrom providethis phase: Flex Markets Unlocked Innovation Programme: Phase 1 projects. 

Phase 2 - up to £2 million funding for the development and demonstration of their technical solution. See details of the funded project from this phase: Flex Markets Unlocked Innovation Programme: Phase 2 projects. 

Programme completion 

The Flex Markets Unlocked Innovation Programme concluded at the end of March 2025. The competition funded three feasibility studies and supported one project through to the demonstration phase. A fully working version of the proof-of-concept technical solution was delivered in Phase 2 and demonstrated under a simulated market environment. This facilitated system-wide coordination, standardisation and revenue stacking across multiple flexibility markets. 

The programme formed part of the Department for Energy Security and Net Zero’s innovation portfolio, supporting the transition to net zero by enabling distributed energy system,resources including(DER) shiftingto participate in markets and provide system-wide flexibility in large volumes. This supports a more diverse and competitive marketplace – unlocking flexibility.  

Final project report

• Flexibility Markets Unlocked: phase 2 - final report

Background 

Without low carbon flexibility - the ability to shift the consumption or generation of energy in time or location to balance supply and demand.demand – the system will be less secure and more expensive. Analysis from the 2021 Smart Systems and Flexibility Plan estimated that deploying flexibility could save up to £10 billion per year by 2050. 

ThisDecarbonisation competition of upour toenergy £2.6system millionincluding looksthe forelectrification innovativeof ideastransport onand heating technicalwill solutionsdrive whichthe coulddeployment helpof standardizemillions andof coordinatedistributed flexibilityassets markets,including makingelectric vehicles, itheat pumps and easiersmart appliances. Key to buyachieving a smart and sellflexible energy flexibilitysystem andwill creatingbe aharnessing morethe diversevalue andof competitivedistributed marketplace.

Unlockingenergy flexibilityresources (DER) like these. Using these sources of demand flexibly – both in domestic and non-domestic sectors –- represents a represents a huge opportunity to make better use of our homegrown renewable electricity, reduce our dependence on gas and lower consumer bills.bills. 

However, barriers for DER market participation have been observed, including: 

• low participation in major national markets due to operational complexity and higher perceived risk, aggravated by a lack of visibility on both the buy and sell side
• difficulties in revenue stacking because markets are not coordinated, limiting the scale and variety of DER that is coming forwards, as well as limiting market liquidity
• complicated market entry process particularly for smaller entrants, with opportunities fragmented across several markets with different registration, qualification and monitoring requirements

This programme aimed to address these barriers by designing and developing solutions which could improve the ease of access to markets, market coordination and revenue stacking across markets to get DER actively participating to provide system flexibility in large volumes. 

This programme was part of the Flexibility Innovation Programme which sought to enable large-scale widespread electricity system flexibility through smart, flexible, secure, and accessible technologies and markets. The Flexibility Innovation Programme funded innovation across a range of key smart energy applications, and sat within the Net Zero Innovation Portfolio (NZIP).