Post: Flexibility could save £70B, says Energy Systems Catapult 

Flexibility could save £70B, says Energy Systems Catapult 

Scaling flexibility technologies could unlock at least £70B in savings by 2050, a report by the Energy Systems Catapult has found. 

The Innovating to Net Zero 2026  report, published on 25 February, modelled and assessed four future scenarios for the energy system and identified five peaks gaps that will shape the overall scale and architecture of the UK’s cleaner energy system:  

• peak power gap: the instantaneous maximum gap (in GWe) between supply and demand, driving the need for short-term capacity; 

• peak energy gap: the maximum amount of energy (in TWhe) to be shifted during a single day to minimise the need for dispatchable power; 

• peak daily gap: the maximum amount of extra dispatchable power (in GWe) that over the course of a day would bring low-carbon generation into balance with demand; 

• peak duration gap: the volume of storage needed (in TWhe) to address prolonged periods of low renewables generation; 

• peak heat gap: the additional heat demand during a period of extreme cold weather that is not cost-effective to satisfy using electricity under current assumptions of technical cost and performance. 

The report noted that electricity consumption could increase by as much as 80% by 2040 through the growing electrification of transport and heat. Data centres could require an additional 28 TWh in 2040, representing 5% of overall demand. Achieving the UK government’s Net Zero targets at least cost hinges on the high use of renewables, nuclear, and crucially innovations that enable flexibility.  

Priority areas identified included empowering consumers through automated, transparent solutions and real-world trials that reward participation while protecting vulnerable households. Accelerating electric vehicle flexibility through smarter charging, expanded on-street and depot infrastructure, better vehicle-to-grid propositions, and standardised systems. Reducing peak heating demand through scaling heat pumps, advanced thermal storage, and low-temperature district networks. Network optimisation should harness AI, improved data sharing, and smarter planning. Mainstreaming long-duration energy storage through hydrogen demonstrators and new technologies will strengthen grid resilience and decarbonisation while lowering costs and improving overall system efficiency nationwide reliability.