The UK — In a pivotal move for Britain’s energy transition, NESO has issued a wide-ranging “Call to Industry” encouraging large industrial and commercial electricity users to participate in demand-side flexibility (DSF) schemes. The aim is to tap the latent flexibility of big energy users and turn it into a system-wide asset as the country works towards its clean-power and net-zero goals.
Key Points of the Initiative
- The call is directed at major energy-consuming organisations — for example cold-stores, data centres, airports and heavy-industry sites — to partner with NESO or a flexibility-aggregator to shift, reduce or store their electricity use when requested by the system operator.
- NESO emphasises that the initiative aligns with the broader Clean Flexibility Roadmap, which sets out how GB’s electricity network will manage the rising share of renewables, variable generation and changing demand patterns.
- Participation offers industrial users a chance to unlock new revenue streams — being paid for delivering flexibility helps turn energy assets into commercial advantage, rather than just cost centres.
- NESO is also supporting the initiative with an onboarding framework and engagement process, making it easier for large users to connect, register and earn for flexibility contributions.
Why This Matters
- Grid stability & renewables integration: As intermittent renewable generation (wind, solar) increases, the ability to adjust demand becomes as important as increasing supply. Large flexible loads provide a potent tool to smooth peaks and troughs.
- Industrial-sector opportunity: For big users of electricity, flexibility offers a way to monetise idle capacity, shift production away from peak pricing periods, or deploy on-site storage or generation in a monetised context beyond mere cost-saving.
- Strategic alignment: The move embodies the shift from supply-side investment (more generation) towards system flexibility, a key enabler of the transition to clean power by 2030.
Challenges & Considerations
- Operational readiness: Industrial users must be able to reliably shift or reduce demand and have visibility of how and when calls will be made — this often requires automation, monitoring, agreements with aggregators and internal readiness.
- Commercial complexity: The incentives are new and the business case may be unfamiliar to many industrial users. Understanding the pricing, contracting, monitoring and regulatory context is essential for adoption.
- Measurement & verification: Accurately demonstrating that demand has been shifted or reduced in the timeframe and modality required by NESO is technical and will require data-systems, telemetry and perhaps third-party verification.
- Long-term commitment: Flexibility schemes are still evolving. Companies must assess whether engaging now will deliver consistent ROI, regulatory clarity and operational alignment over time.
What to Watch Next
- How many large industrial sites register and are accepted into NESO’s flexibility programmes over the next 6–12 months — uptake rate will indicate how compelling the proposition is.
- The actual revenue-and-contract terms being offered to participants, and whether they generate meaningful income or cost offset.
- Whether smaller or mid-scale commercial users follow the lead, broadening the base of available demand-side flexibility.
- How regulators and policymakers support this shift via market design, tariffs, settlement mechanisms and recognition of flexibility in planning and investment.
Final Thought
NESO’s appeal to large electricity users to unlock demand-side flexibility marks a significant strategic inflection point in the UK energy system. The message is clear: flexibility isn’t just about batteries or extra generation — it’s also about smarter, responsive demand. For industrial users, this represents an opportunity to participate in the transition and convert part of their electricity usage into a commercial and strategic asset. Success will depend not just on intent, but on practical delivery: reliability, engagement and clear commercial returns will determine whether demand-side flexibility becomes a mainstream tool in Britain’s path to clean power.