The UK flexibility market presents significant opportunities for distributed energy resource (DER) owners and managers. As electricity networks transition to accommodate renewable energy sources, system and grid operators increasingly rely on flexibility services to maintain grid stability.
This guide connects flexibility service providers (FSPs) to what they need to know about participating in UK flexibility markets.
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This guide covers:
- What providers need to consider before participating in flexibility markets
- How to register on a platform to participate in markets
- The UK’s standard flexibility products and services
- The revenue opportunities for flexibility providers
- How to prepare for live market participation
- Best practices for DER operators or managers
- How Electron can help
1. What do providers need to consider before participating in flexibility markets?
Start with discovery
Flexibility is now more accessible than ever, but understanding all available options requires initial research. Resources like webinars lead by distribution system operators (DSOs), SP Electricity North West’s “Flexibility Hub”, and direct discussions with flexibility teams provide valuable insights into market potential.
Know the questions to ask
To assess your flexibility opportunities, consider these key questions specific to your organisation:
- Which type of market (s) do you want to offer into?
- How much power (MW) can your assets provide?
- What’s the opportunity cost of the energy you could offer?
- What potential blockers and challenges might you face?
Simple factors to consider
- Consider your market approach: Choose based on asset type and size, deciding between availability payments or utilisation compensation
- Calculate your capacity: Determine instantaneous energy provision and total MWh/MWs available
- Evaluate your energy value: Account for other potential earnings or savings this energy could provide
- Assess aggregation needs: Consider which assets you manage as an aggregator that fall inside the correct constraint management zone
→ Discover more FSP resources
2. How to register on a platform to participate in markets
Once you’ve assessed your suitability:
- Complete the pre-qualification questionnaire (PQQ)
- Read and agree to the service agreement
- Add your asset details via spreadsheet, CSV, API, or webpage (depending on the platform)
- Monitor the platform for flexibility opportunities to bid for
The UK flexibility market continues evolving, with standardised products and market platforms making participation increasingly accessible for DER operators of all sizes.
3. What are the UK’s standard flexibility products and services?
The Energy Networks Association’s (ENA’s) Open Networks programme has standardised flexibility products in the UK, so all market participants can engage consistently. Each product defines when flexibility is called, how payments are made, and what level of certainty providers have around dispatch.
The five UK standard products
- Scheduled utilisation: This is when market operators forecast the need for flexibility in advance for network load management. They schedule and pay providers for a given time window.
- Operational utilisation: The system operator only calls on flexibility closer to real time when it is definitely needed for network restoration. There’s no availability payment, only utilisation payments – when the flexibility is actually used.
- Operational utilisation + scheduled availability: FSPs commit in advance (e.g. season-ahead, month-ahead) and are paid an availability payment for guaranteeing they’ll be ready during the contracted window. If dispatched, they also receive utilisation payments.
- Operational utilisation + variable availability: FSPs indicate they are available, but this can vary and be refined on a month-ahead or week-ahead basis. THis means lower certainty for DSOs, but FSPs are not tied into rigid long-term commitments. Payments are mainly utilisation-based, with less emphasis on availability.
- Peak reduction: A longer-term product focused on reducing baseline demand at peak times through efficiency measures or behavioural change. There’s no “dispatch” by the operator; instead, FSPs commit to sustained demand reduction over time.
Real-world examples
Imagine a local grid with lots of rooftop solar and EV charging. On a sunny day with low local demand, solar export might cause network congestion between 2-4pm.
- With scheduled utilisation, the operator forecasts a likely congestion risk well in advance (e.g. a weekday evening peak) and pre-agrees delivery windows with flexibility providers, such as a community battery or EV aggregator.
- With operational utilisation, the operator waits until 2pm to see if the congestion actually materialises. If it does, they dispatch the battery or EV charging shift and pay for the energy shifted.
These products evolved from the original four established in 2020 (Sustain, Secure, Dynamic, and Restore), with enhanced granularity.
The new products maintain the same conceptual framework but provide more options for market operators and flexibility providers.
Understanding which products align with your asset capabilities is important for successful market participation.
→ Read more in the guide to UK standard flexibility products and services
4. What are the revenue opportunities for flexibility providers?
Flexibility providers can access multiple revenue streams. The key opportunities include:
- Balancing services: Support ESO grid balancing at transmission and distribution levels
- Reserve markets: Manage demand peaks with significant value growth (500% increase in 2021, reaching ÂŁ600m+ gross value)
- Demand response programmes: Adjust consumption patterns to support renewable integration
- Ancillary services: Provide frequency response and system stability support
- Energy storage: Optimise price arbitrage and congestion management
- Flexibility markets: Similar to demand response programmes, markets offer a dynamic way to provide flexibility services across regions
The strategic approach involves understanding your asset’s flexible potential and engaging at both distribution and transmission levels to maximise value.
→ Explore revenue streams and market opportunities
5. How to prepare for live market participation
Once you’re qualified and the markets are published on the relevant platform, providers can then prepare to participate in the following ways.
- Registration documents: Ensure your documentation is up to date, including insurance certificates and financial details
- Asset data management: Keep performance metrics, capacity, and location data accurate and current
- Functionality verification: Conduct end-to-end test runs to confirm system responsiveness
- Pricing strategy: Balance competitiveness with value extraction through accurate cost modelling
- Stakeholder communication: Establish clear channels with asset owners and users
Proper preparation prevents delays in payment and ensures maximum value from your assets.
→ Learn more about these five steps
6. Best practices for DER operators or managers
Based on practical experience from DER operators, three key recommendations emerge for successful flexibility participation:
Top implementation tips:
- Understand participation requirements: Assess asset type, calculate capacity, evaluate value, and select appropriate markets
- Manage expectations and resources: Integrate flexibility into standard operations, allocate dedicated team time, and embed processes organisation-wide
- Choose platforms over programmes: Avoid manual processes by using market platforms for better scalability, efficiency, and revenue access
The platform approach enables access to multiple markets through unified systems, reducing administrative burden and improving revenue potential.
→ Learn practical implementation strategies from experienced operators
7. How Electron can help
Electron connects distributed energy resources to coordinated markets through ElectronConnect, our configurable market platform.
Ready to explore your flexibility opportunities through ElectronConnect? Contact our flexibility experts for personalised guidance on your market participation strategy.
