Ofgem fast-tracks new energy flexibility tool for early launch

Press release
Publication date
Industry sector
Distribution Network

Ofgem has today announced that Elexon has been selected as the operator and delivery firm for the new Flexibility Market Asset Registration (FMAR) system. Delivery of the system has also been brought forward by a year, with the launch now scheduled for 2027, and is expected to accelerate the number of flexible tariffs for consumers that can bring down bills.  

A flexibility market in energy helps balance electricity supply and demand by allowing people to adjust their usage based on grid needs, making the system more stable and efficient. For example, it can ensure that an electric vehicle (EV) that’s plugged in starts charging when there’s plenty of renewable energy available (such as when it’s a windy night), helping balance the grid and charging with cleaner, cheaper energy. 

These assets, however, need to be registered to a flexibility market. The FMAR system will streamline the registration process for aggregators – which groups together smaller assets like solar panel, EV chargers and home battery storage systems, enabling them to join more than 20 flexible energy markets with a single registration.  

In practice, this means the introduction of a one-stop-shop to register flexible assets, providing users with flexible energy quickly and eliminating the complexity of the myriad platforms and processes currently in use. 

The new system, set to be operational in 2027, will mean aggregators only have to register once with their network operator, Distribution System Operator or 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 

“Whether you’re charging a car, using solar panels, or simply just putting on a dishwasher, doing so at a time that can help balance the grid and take advantage of renewables will cut costs and lead the country to a more stable energy system that doesn’t rely on volatile international gas markets.  

“The work to bring down bills and clean up our energy system is not an overnight process, but by bringing forward FMAR by a year, Ofgem is making clear its commitment to facilitating an energy system that allows consumers everywhere to take advantage of the benefits flexible tariffs have to offer.”  

Elexon has been chosen following a consultation which closed in September 2024, and it will now engage stakeholders, including aggregators, in working groups to design the requirements and capabilities of the new IT system for FMAR.  

It is already the market facilitator for local energy flexibility, where its mission is to spearhead and enable greater flexible energy use across GB’s local electricity distribution networks. It works with Ofgem and other stakeholders to drive alignment between local and national flexibility markets and remove any barriers to entry.  

Notes for editors   

Flexible power is an essential component of managing to  meet increased demand while managing less predictable supplies from renewable generation, and it has been estimated, that flexible energy use can save between £30-70 billion on system costs in the period 2020 to 2050, which means lower bills for all consumers.