The flexibility sector is facing a challenge, but it’s not the one everyone usually talks about.
For nearly ten years, demand flexibility has struggled to gain recognition. Questions loomed: Does shifting energy loads really work? Will customers get involved? Can utilities rely on it during critical times? Thankfully, those questions have been answered through various pilots and extensive research, showing positive results.
But why does it still seem like flexibility is lagging in many areas?
The answer lies in the difference between proving a concept and implementing it widely. The industry has made great strides in demonstrating that flexibility works. The next step is transforming those successful methods into large-scale adaptations.
Growing demand for electricity is now a common topic in resource planning and industry discussions. Various factors, like data centers and electrification, are coming together, and the tools to tackle this demand already exist and have been validated. Leading flexibility providers have shown that technology for managing flexible loads is ready for major deployment. The real question now is how to scale participation swiftly.
This poses a more complicated issue than it seems, and it’s not just about engineering.
Many existing flexibility programs still mimic pilot projects: a thermostat program here, an incentive for batteries there, all run by different teams. While this approach worked well for proving their concepts, it’s too fragmented for the scale utilities require now—coordinating millions of devices that must engage and be reliable when needed.
Addressing customer experience is just as essential as managing the grid. Although the industry has invested heavily in technical aspects like forecasting and verification, customer engagement hasn’t always received the same focus. More attention needs to be paid to the sign-up experience: whether potential customers find it valuable enough to join and whether they remain engaged afterward.
This initial engagement is crucial for scaling up. An inconvenient sign-up process or a confusing app can limit participation, even when the technology is no longer a barrier. Every percentage point increase in enrollment is significant. For example, if a sign-up process converts 18% of users instead of 12%, it not only improves customer experience but could also lead to enough flexible capacity to prevent costly infrastructure investments. Engaged customers are those that utilities can consistently rely on, yet these operational details often go unnoticed in discussions.
Utilities making strides in this area treat customer participation as fundamental infrastructure. This involves simplifying the sign-up process to a single point of entry and ensuring customer engagement extends beyond the initial sign-up. The experience should be so seamless that customers barely have to think about it—because friction leads to fewer participants and a slower accumulation of capacity. Octopus Energy is a prime example, having created the world’s largest virtual power plant thanks to its customer-centric approach.
The utilities that will be ready for increased demand won’t necessarily be those with the most successful pilots. Instead, it will be those capable of converting these pilot results into steady, large-scale customer participation. Achieving this will require the same dedication that the industry has dedicated to proving the validity of flexibility.
We have spent a decade demonstrating the importance of flexibility on the grid. The upcoming decade will focus on making it easy for millions of customers to participate.