POLICY REPORT: Potential Of Consumer Led Flexibility in Industry

The report examines how UK industrial consumers could help balance a low-carbon electricity system by adjusting the timing, level or source of their electricity demand.

Drawing on a literature review, stakeholder workshop and interviews with industry, government, regulators and research organisations, the report assesses the practical potential for industrial consumer-led flexibility across energy-intensive sectors. Case studies of cement and steel demonstrate how process characteristics, storage capacity, production schedules and operational risks shape the flexibility that individual sites can realistically provide.

The report identifies a persistent gap between technical potential and commercial viability. It sets out recommendations for more stable incentives, improved data and digitalisation, process-aware measurement and settlement and closer integration of flexibility into industrial electrification and decarbonisation strategies. The report concludes that industrial flexibility should be designed around the realities of manufacturing, enabling industry to support a more resilient, affordable and low-carbon UK electricity system without compromising competitiveness or production.