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Unlocking Flexibility: A Guide for Local Authorities

Published on
January 27, 2026

A practical guide to help councils participate in flexibility markets, reduce energy costs and generate new revenue streams.

Book cover: Unlocking Flexibility guide for local authorities with renewable energy imagery
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Organisations:
UK100
UK Power Networks DSO
Association for Decentralised Energy (ADE)
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What's this guide about?

Britain's electricity system is transforming at pace. As the country moves toward a decentralised, low carbon energy future powered by renewable generation, storage and smart technologies, flexibility plays a critical role in maintaining system resilience, reducing costs and enabling more renewable energy to connect to electricity networks.

This guide, developed collaboratively by UK100, UK Power Networks DSO and the Association for Decentralised Energy (ADE), provides local authorities with practical, accessible information on how to engage with flexibility services. It explains how councils can participate using assets they already own, and how they can work with partners across their communities to unlock wider benefits.

Why do you need this guide?

It will help you understand the opportunity

UK Power Networks DSO delivered £114 million in customer benefits through flexibility services in 2024/25, up from £91 million the previous year. Engaging in flexibility helps cut energy bills, reduces the need for costly grid upgrades, strengthens local energy security and enables more renewable generation to connect to networks.

It will outline how you can participate

Local authorities oversee a diverse range of assets that can provide flexibility when managed intelligently: EV charging infrastructure, batteries, heat pumps, solar farms and public buildings. The minimum threshold for local DSO markets is just 10kW, and councils can pool smaller assets together to meet requirements. Beyond their own estates, councils can encourage residents, businesses, schools and community groups to participate.

It will explain the revenue opportunities

Councils can earn indicative annual revenues of approximately £65 per 7kW EV charger, £35 per heat pump and £240 per 4.8kW battery through flexibility services. Aggregated across council estates and communities, these represent meaningful income streams. More importantly, they represent local leaders taking an active role in the energy system.

It will demystify flexibility markets

The guide outlines both DSO markets and national services like the Demand Flexibility Service. It debunks common myths: that flexibility is only for large-scale operators, that extensive automation is required, or that this is a temporary opportunity. It provides clear pathways for councils at every stage of their flexibility journey.

It will help you get started

Drawing on UK Power Networks' expertise, the guide provides practical steps to identify suitable assets, engage with DSOs early, review contracts and integrate flexibility into future planning. It includes contact details for the UK Power Networks DSO Local Net Zero team and information about free digital tools to support your planning.

Need any support?

  • For additional support or to share feedback on this guide, reach out to UK100: membership@uk100.org
  • If you are in London, South East or East of England, contact UK Power Networks DSO Flexibility Markets team at flexibility@ukpowernetworks.co.uk to schedule a personalised session and explore your potential benefits.
  • Contact the Local Net Zero team at LAEP@ukpowernetworks.co.uk to find out more about tailored support for local authorities.