In July 2024, Ofgem concluded that the electricity market services provider, rather than the National Energy System Operator (NESO), should take over as the market facilitator delivery body to align flexibility markets by the end of 2025.

At the time, Ofgem said: ‘The falling cost of batteries, the increasing uptake of electric vehicles, and the spread of smart technologies provide the means to be more flexible in how and when we consume energy. But we also need the right institutions, governance and market and regulatory framework to capitalise on these new technologies. Getting those different components right will enable us to reap the full benefits of a renewables-dominated energy system, and is a key focus of our multiyear strategy as we work to establish an efficient, fair and flexible energy system.’

It continued: ‘At the national level, establishing NESO as GB’s independent system operator is a key reform that will transform the energy landscape. Flexible resources are going to be an increasingly important tool for NESO to operate the electricity system, giving it an essential role to play in supporting the growth of flexibility.... Elexon delivering the market facilitator function will help support having a strong institutional landscape. The market facilitator will work hand-in-hand with NESO and together they will deliver more accessible, coordinated and transparent flexibility markets at all levels, which play a core role in efficiently running our decarbonised power system.’

Now, for its part, Exelon has published more information about its plans, which include a handover from ENA ON by July, although areas of ongoing development will be transferred later.  

Current projects include a common end-to-end flexibility process, a long-term vision for market coordination, a Flexibility Market Asset Registration system, Day 1 Flexibility Market Rules and formal governance of the market facilitator.

In March, Exelon Head of Flexibility Steven Gough said: ‘As we stand up as the market facilitator, we aim to build on the achievements of ON, accelerating the evolution of the market in a way that delivers value for all stakeholders. Year 0 delivery (to December 2025) marks a crucial moment in this journey.’  

‘Alongside the important broader work on market facilitator governance and process, we need to start delivering value, and this focuses on the development of Flexibility Market Rules. We need to deliver the first version of clear and robust rules for Day 1, whilst developing new rules and thinking along the way. Whilst 2026 is our first year of formal market facilitator delivery, the market cannot afford to pause until then, and so we aim to deliver clear market improvements through our work this year.’

In related news, ENA, Elexon, NESO and electricity demand standards body OpenADR Alliance have signed a letter of intent to develop a standard for interoperable flexibility dispatch systems, OpenADR 3.0.  

In announcing the deal in March, ENA said that flexibility is all about changing where or when electricity is consumed or generated. OpenADR 3.0 aims to ensure that any individual who makes temporary changes to the way they use energy, also known as a flexibility service provider, will experience a consistent process, no matter the network operator.

It added that, as we move towards a fully flexible energy system, different technologies need to work together seamlessly. OpenADR 3.0 is a common standardised language that can be used to turn devices off during high levels of energy demand or can turn devices on during periods of high renewable generation, and modulate output as required for either scenario.

It also said that this project is focused on using OpenADR 3.0 to standardise the dispatch instructions in Great Britain’s flexibility market between all network operators and flexibility service provider assets.