The Future of Flexibility: Where Will the Market Go Next?

The flexibility market’s moving fast – and most suppliers are focused on how to participate. But this isn’t just a question for today.

With many still relying on systems and processes designed for a very different market, the risk is that they’ll find it much harder to keep up as new models, partners, and regulations emerge. The ultimate danger here isn’t about being late – it’s about being locked in to an approach that can’t keep up.

So, what’s the solution?

A Vision for the Future

National Grid and Ofgem have both set out ambitious visions for a smarter, more flexible energy system by the year 2035. Their plans call for more local flexibility, more participation from homes and businesses, and new ways to trade and share energy across the grid. According to Aurora Energy Research, the UK flexibility market could be worth more than £2 billion by 2030.

New models are already emerging. Local flexibility services, peer-to-peer trading, and bundled energy offerings are starting to appear in the market. Customers are looking for greater control, better value, and new ways to engage with their energy suppliers.

What Will It Take to Lead?

The suppliers that will lead in the next phase of flexibility will be those who can adapt at pace. This means having systems and processes that can support new business models, connect with new partners, and respond to changes in regulation or technology. It also means being able to scale up fast when new opportunities arise.

A report from National Grid ESO highlighted that the winners in the flexibility market will be those who invest in digital tools and automation. These suppliers will be able to launch new services, reach new customer groups, and capture value from every part of the market.

Building for Continuous Change

Flexibility is not a one-time project. It’s an ongoing journey that will require suppliers to keep learning and adapting. This is why investing in future ready platforms and skills is so important. Suppliers need to be able to try new ideas, test new services, and scale up successful ones without having to rebuild their systems every time.

Continuous improvement will be key. The most successful suppliers will be those who use data and feedback to make their operations better every day. Doing so will help them stay ahead of competitors and continue delivering value to customers as the market changes.

What Should Energy Suppliers Do Next?

The flexibility market is full of promise, but also full of change. Suppliers need to ask themselves a serious question: are they are building for the future, or just for today?

By investing in digital platforms, automation, and new business models, suppliers can position themselves to lead in the next wave of flexibility.

Discover how we can support you through the changing energy flexibility market.

References

Aurora Energy Research. The Value of Flexibility in the UK Power Market.

National Grid ESO. Future Energy Scenarios.

Ofgem. Flexibility in Great Britain

FAQs

Where is the flexibility market heading next?

Were moving towards a smarter, more flexible energy system by 2035, with more local flexibility, greater participation from homes and businesses, and new ways to trade and share energy across the grid. Aurora Energy Research also suggests the UK flexibility market could be worth more than £2 billion by 2030.

What’s the biggest risk for suppliers in the next phase of flexibility?

The key risk isn’t simply being late to the market, but becoming locked into systems and processes designed for a very different market. As new models, partners and regulations emerge, suppliers need approaches that can adapt quickly and scale when opportunities arise.

What should energy suppliers do now to lead in flexibility?

Suppliers should invest in digital platforms, automation, future-ready skills and new business models. The leaders will be those able to test new services, connect with partners, respond to regulation and technology changes, and continuously improve using data and feedback.