Upgrading our Energy System – smart systems and flexibility plan


Our energy system is changing. There is more low carbon generation, which is intermittent and often located close to people's homes and businesses, and it produces different amounts of electricity depending on factors like the time of day or the weather. New technologies are emerging and the costs of many of these technologies, such as storage, are falling rapidly.

If we get the changes right, we have the opportunity to create new businesses and jobs, empower consumers and help people save up to £40bn off their energy bills in the coming decades.

This Plan is a culmination of work with BEIS, it is a core component of Ofgem's future facing work to enable the energy system transition, and it forms part of the Government’s Industrial Strategy.  It is supported by Government’s significant increase in public research and innovation spending, including on new storage technologies.  

We asked for views on what changes the Government and Ofgem should make through our call for evidence last year. We have engaged throughout this process with innovators from across the energy industry. This Plan shows how the Government and Ofgem are taking action alongside industry to deliver a smarter, more flexible energy system by:

  • removing barriers to smart technologies, including storage
  • enabling smart homes and businesses
  • making markets work for flexibility

This Plan enables the development of a smart, flexible energy system that will reduce costs for consumers and industry, and support the growth of innovative new businesses.