Ofgem has announced that Elexon will be the market facilitator for local flexibility, following a consultation on whether Elexon or the Future System Operator should take on this role.
The appointment aims to support the government’s 2030 clean power target by strengthening the energy system’s flexibility.
Elexon will start its new role by early 2026, provided three key tasks are completed.
These tasks include designing the market facilitator role, updating the Balancing and Settlement Code (BSC) for Elexon and working with industry stakeholders to develop flexibility markets.
Elexon Chief Executive Officer, Peter Stanley said: “We are pleased to be appointed by Ofgem to deliver the market facilitator role.
“Flexibility will be pivotal to the energy sector’s drive to net zero and we will work with Ofgem, the NESO, flexibility providers, Distribution System Operators and the industry to ensure that we deliver the role successfully.”
Avi Aithal, Head of Open Networks at Energy Networks Association, said: “We’re looking forward to working with Elexon in their new role as market facilitator for local energy flexibility.
“We’ll work with them to ensure the momentum built up in the Open Networks programme continues during the transition.”
An ESO spokesperson said: “The ESO welcomes Ofgem’s announcement that Elexon will take forward the Market Facilitator role to deliver closer alignment between national and local flexibility markets.
“We look forward to working closely with Elexon, Ofgem, the Energy Networks Association’s Open Networks programme and Distribution Network Operators (DNO) to establish a final design for the market facilitator role and to ensure it is successful in its delivery.”
