• Energy Transition Readiness Index (ETRI) 2024 report underscores a vital need for flexibility to support a high-renewables grid. 

• UK remains behind other European countries, such as Norway, Finland, and Sweden, where flexibility markets are already more advanced. 

• Report reiterates that UK consumers could save over £40 billion by 2050 with the right markets in place. 

• ETRI 2024 assesses and compares the readiness of 14 European country electricity markets for the renewables-based, low cost energy system of the future. 

As world leaders prepare for COP 29 the Association for Renewable Energy and Clean Technology (REA) has released its 2024 Energy Transition Readiness Index (ETRI) report, a wide-ranging assessment of electricity markets in 14 European countries. Sponsored by the Joint Radio Company, this year’s ETRI report captures key trends from the past four surveys and highlights crucial areas for investment to meet the 2030 Clean Power targets across Europe. 

The 2024 ETRI report underscores a vital need for flexibility to support a high-renewables grid. While renewable energy progress is strong, the UK remains behind other European countries, such as Norway, Finland, and Sweden, where flexibility markets are already more advanced. For the UK to achieve its 2030 Clean Power Mission, urgent action is needed to address these critical flexibility challenges. 

Flexibility is the key to a resilient, renewable-powered grid. Flexibility enables the electricity system to adapt swiftly to changing market conditions, allowing both generators and consumers to respond to shifts in electricity supply or demand. As European grids decarbonise, the growth in variable renewable generation, energy storage solutions and demand-responsive consumers will increase. Providing flexible services will therefore be essential to delivering a secure low-carbon electricity system. 

Since 2014, European solar and wind output has increased by 140%, and now contributes 27% of electricity production across the countries analysed in this report. The report also shows that to reach 2030 Clean Power targets, the UK must rapidly scale up flexibility resources alongside an estimated additional 150TWh wind and solar output. 

Growing demand is also pressing the need for flexibility. In the UK and across Europe, the electrification of heating and transportation, the expansion of data centres, and the development of giga-factories are pushing electricity demand higher. Meeting these needs will require flexible energy storage, smart EV charging and smart heat pumps – including Long Duration Energy Storage Systems to provide longer response periods. 

Delivery of flexibility also relies on smart grid communication systems to enable agile and responsive electricity networks. As variable renewable generation and increasing levels of flexibility are required, the importance of enhanced operational communications to enable real-time monitoring, control and balancing of the energy systems becomes ever more critical. While the UK has made some progress implementing smart grid technologies, it risks falling behind our European neighbours. 

Realising flexibility systems holds significant benefits for consumers. Across the EU, consumer savings are projected to reach €71 billion annually by 2030, while UK consumers could save over £40 billion by 2050. Yet, realising these savings hinges on overcoming several ongoing challenges common across Europe, including: 

• Lack of clear strategies and targets for low-carbon flexibility resources 

• Grid connection backlogs and limited grid capacity 

• Insufficient policies to incentivize investment in flexibility assets 

• Planning restrictions and delays in obtaining approvals 

• Restricted access to flexibility markets 

• Competition from legacy fossil-fuel assets 

• Inadequate metering, data, and smart grid communication systems 

• Rising cybersecurity risks 

Trevor Hutchings, Chief Executive of the REA (Association for Renewable Energy and Clean Technology), said: 

“As attention turns to the Climate COP starting next week, the REA calls on leaders and European governments to act decisively to tackle the growing flexibility challenge in energy markets. In the UK, as in other European markets, the rapid deployment of renewables must be matched with clear strategies to develop deep, transparent, and accessible flexibility markets. If developed in the right way, these markets will help ensure we balance electricity supply and demand in the most efficient way, saving UK consumers £40 billion by 2050, our report shows.  

However, the UK still trails behind other European leaders. Grid connection backlogs, planning restrictions, inadequate smart grid communication, and limited flexibility markets are slowing progress—preventing the UK from fully leveraging renewable benefits, reducing consumer costs, and meeting rising electricity demand.  

We are nonetheless encouraged by the new Government’s commitments to address many of these challenges and achieve Clean Power by 2030. The industry needs a clear, holistic policy approach, utilising the full levers of government, to bring about the energy system of the future.” 

Dr Peter Couch, Chief Executive of the Joint Radio Company, observed:  

“The 2024 Energy Transition Readiness Index highlights that while the UK has made progress towards its decarbonisation goals, it still faces significant barriers to achieving them. As a country, we are using 20th century techniques to manage a 21st century energy system. But it doesn’t have to be this way.  

“Many countries in Europe are adopting private wireless-based communications, enabled by access to dedicated radio spectrum for energy network operators. Mirroring this approach in the UK would allow us to connect more low carbon technologies faster and at less cost – a crucial step on the path to net zero.”