Spending on European flexibility markets hit €16 billion (£13.8bn) in 2022 but is expected to reach only €9 billion (£7.7bn) in 2023, despite rising demand driven by electric vehicles and renewable energy.
LCP Delta’s FLEXtrack tool shows that flexibility market spending tripled in 2021 and doubled the following year.
While fast-acting services like frequency response dominate, opportunities are increasing in slower-acting reserve markets, with greater openness in wholesale markets and data accessibility improving.
Jon Ferris, Head of Storage and Flexibility at LCP Delta, said: “Flexibility is an increasingly important part of our energy systems, and is set to play a major role in the transition to renewable energy sources.
“With prices now returning to more normal levels, it is more important than ever that flexibility providers can compare and evaluate opportunities across different value streams in different countries to develop their market entry strategies.”
