Energy Systems Catapult reports that expanding flexibility is essential for reducing costs and achieving net zero at the lowest possible expense.
According to new research, deploying flexibility technologies throughout the UK energy system could unlock at least £70bn in savings by 2050, while also creating major opportunities for domestic innovators.
The Innovating to Net Zero 2026 report reveals that high levels of renewables and nuclear, supported by flexible technologies, result in the lowest overall system costs. In contrast, scenarios with slower adoption of flexibility and clean generation are projected to be at least £70bn more expensive by mid-century.
With electricity demand expected to rise by up to 80% by 2040 - driven by electric vehicles, heat pumps, and data centres - balancing supply and demand will become increasingly challenging.
Data centres alone could contribute 28TWh of demand by 2040, representing about 5% of total consumption.
The Catapult identified five key “peak gaps” between energy supply and demand that must be addressed through flexibility innovations.
Promising technologies include EV smart charging, vehicle-to-grid services, heat networks with thermal storage, static batteries, hydrogen storage, and AI-enabled digital coordination platforms.
Electric vehicles stand out as especially valuable. Smart charging can significantly ease peak pressure on the grid, while vehicle-to-grid services offer even greater potential if integration and consumer engagement improve.
Guy Newey, CEO of Energy Systems Catapult, stated that adopting flexibility can lower infrastructure costs and help UK innovators expand globally.
The report also introduces a new System of Systems Map to help businesses visualize how technologies, markets, and organizations interact across the energy system.
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