Decision: market facilitator policy framework
Decision
- Publication date
- Industry sector
- Distribution Network
- Decision for
- Market facilitator policy framework consultation
Related links
- Decision: flexibility market asset registration
- Decision: Market facilitator delivery body
- Flexibility Market Asset Registration
- Decision on future of local energy institutions and governance
- Consultation: Future of local energy institutions and governance
- Call for Input: Future of local energy institutions and governance
The energy system in Great Britain is experiencing significant changes to support the transition to net zero emissions. A key focus is generating electricity from renewable sources, such as wind and solar power, to meet the UK government's Clean Power by 2030 goal.
As renewable generation increases, flexibility becomes essential for achieving a clean power system and reaching net zero by 2050. Currently, barriers are preventing flexibility service providers from effectively participating in markets.
In July 2024, we announced that Elexon were appointed as the market facilitator responsible for coordinating local and national flexibility market arrangements. The goal is to reduce friction and enhance liquidity in these markets.
This decision sets out the policy framework for the market facilitator. In it we summarise consultation responses and outline our decision and rationale regarding the following proposals:
- Setting up the market facilitator
- Market facilitator function
- Market facilitator deliverables
- Market facilitator performance arrangements
Following this decision, we will consult on new license conditions to be added to the Distribution Licence and NESO’s ESO Licence. We will also produce and consult on a governance framework document and impact assessment.