Scaling flexibility technologies across the UK energy system could unlock at least £70bn in savings by 2050 while creating significant opportunities for homegrown innovators, new research from Energy Systems Catapult has found.
The Innovating to Net Zero 2026 report highlights how high deployment of renewables and nuclear, supported by flexible technologies, delivers the lowest overall system costs. Scenarios with slower uptake of flexibility and clean generation were found to be at least £70bn more expensive by mid-century.
As electricity demand is projected to rise by up to 80% by 2040, driven by electric vehicles, heat pumps and data centres, balancing supply and demand will become increasingly complex.
Data centres alone could add 28TWh of demand by 2040, around 5% of total consumption.
The Catapult identified five “peak gaps” between energy supply and demand that must be bridged using innovations in flexibility.
Technologies with strong potential 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 were identified as particularly valuable. Smart charging could significantly reduce peak strain on the grid, while vehicle-to-grid services offer even greater promise if integration and consumer propositions improve.
Guy Newey, CEO of Energy Systems Catapult, said embracing flexibility could reduce infrastructure costs while enabling UK innovators to scale globally.
The report also introduces a new System of Systems Map to help businesses visualise how technologies, markets and organisations interact across the energy system.
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