Ofgem has today announced that Elexon 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.
The decision document regarding FMAR can be found here - Decision: flexibility
market asset registration | Ofgem
