Elexon named as new market facilitator in UK.

Tuesday 30 July 2024

Exciting news from Ofgem as they appoint Elexon as the new market facilitator to tackle barriers hindering energy flexibility!

With a vision to enhance energy flexibility, Ofgem has entrusted Elexon, a not-for-profit electricity market expert, to take charge as the new market facilitator. This strategic move comes in response to groundbreaking research conducted by the Department for Energy Security and Net Zero (DESNZ) in 2021. The study revealed that embracing flexibility in the energy sector could potentially unlock savings ranging from £30-70 billion by the year 2050, a significant sum that could translate into substantial savings for energy consumers.

By promoting a flexible and streamlined approach to utilising the energy system, the necessity for new energy generation and infrastructure can be significantly reduced. This, in turn, will lead to cost savings and bolster energy security efforts. Elexon’s primary focus will involve close collaboration with key stakeholders such as Ofgem, the Electricity System Operator (ESO), the Energy Networks Association (ENA), local networks, and Flexibility Service Providers (FSPs). Together, they aim to foster alignment between local and national flexibility markets and eliminate any existing barriers in the process.

Eleanor Warburton, Director at Ofgem, expressed her enthusiasm towards this transformative initiative by stating, ‘To effectively navigate the evolving landscape of a low carbon energy system in the future, we require enhanced flexibility tools. These tools are essential for harnessing the full potential of our intermittent wind and solar resources, as well as leveraging network and consumer assets to meet energy demands efficiently. By appointing Elexon as the market facilitator, we are confident in their ability to synchronise and harmonise local and national energy markets, thereby unlocking the true value of flexibility.’

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