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Energy flexibility roadmap: MHHS, cap-and-floor LDES, CfD co-location, Reformed National Pricing, REGOs, permitting and DNO reforms shaping storage, CLF and balancing markets to 2030

Published on: 08 September 2025

Published by a LexisNexis Energy expert
Legal News
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Article summary

Short-duration storage—market and regulatory developments

The Roadmap sets out a blueprint to expand short-duration flexibility across the energy system, blending active consumer involvement with focused network investment. Central to the consumer side is the Marketwide Half-Hourly Settlement (MHHS) programme, unlocking dynamic, time-of-use tariffs and enabling innovative retail offerings that mirror real-time system conditions; Ofgem envisages delivery by 2030 at the latest. Complementary retail reforms aim to deliver tariff transparency, boost uptake of flexible appliances via smart functionality standards, and strip out disincentives, in the form of final consumption levies, on electricity exported from domestic storage and electric vehicles (EVs). Under today’s arrangements, these levies are charged on electricity drawn into home and EV batteries and are not reimbursed when that power is sent back into the grid, thereby discouraging participation in consumer-led flexibility (CLF). By 2050, EVs are expected to supply the majority of CLF capacity, supported by the widespread rollout of bidirectional (V2X) charging and digital tools. A secure, accessible flexibility market will rest on smart meters, robust consumer protections, and inclusive participation strategies, with particular attention to low-income households, together forming a coherent pathway for scaled, short-duration flexibility...

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