Ofgem has announced a new flexibility market system will go ahead in two years time.
It says Elexon will operate and deliver the new Flexibility Market Asset Registration (FMAR) system, bringing forward its launch to 2027, in a move expected to accelerate flexible energy tariffs and help cut bills.
Energy flexibility is all about balancing electricity supply and demand by adjusting energy use when the grid needs it most. For example, an electric vehicle plugged in overnight could start charging when there is a surplus of renewable energy like during a windy night, ensuring cheaper cleaner power is used while stabilising the system.
To make this work assets like EV chargers solar panels and home battery storage must be registered to participate in flexibility markets.
Right now that process is fragmented, with different platforms and complex rules slowing down adoption.
The FMAR system will streamline registration allowing aggregators—companies that group together smaller energy assets—to join around 20 flexibility markets with a single registration.
This means consumers will have greater access to flexible energy deals helping them shift usage to times when energy is cheaper and greener.
Once operational in 2027 aggregators will only need to register once with their network operator, Distribution System Operator or the National Electricity System Operator, to participate in both local and national flexibility markets.
Marzia Zafar Deputy Director of Digitalisation and Innovation at Ofgem said: “Flexing usage in our energy system is critical to lower bills and reduce emissions. By removing barriers for aggregators to register assets we’re increasing the pace at which flexible tariffs can be offered to consumers.”
Elexon was selected following a consultation that closed in September 2024 and will now engage stakeholders including aggregators to design the system’s requirements and capabilities.
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