Energy Flexibility: How It Works And Why It Matters

10 October 2024

Power pylons in a natural landscape with clear sky and mountains.


Energy flexibility is transforming the power grid into an intelligent ecosystem where everyone’s choices from home to mobility to industrial production become central.

In nature, flexibility is an essential trait. To adapt is to evolve. It’s in the DNA of the chameleon, which changes color to blend in, communicate, and regulate its temperature. It’s in the design of bamboo, whose hollow stem bends without breaking under the force of the wind. We find it in the malleable body of the octopus, capable of reshaping itself to hide in unexpected crevices, and in the tenacity of ivy as it chases sunlight, adjusting its growth to reach it.

Human beings have embraced this natural law and applied it to all fields of knowledge. It appears in the physical flexibility of a gymnast or in yoga and Pilates, as well as in cognitive flexibility the ability to adapt one’s thinking to new information, a sign of intelligence rather than weakness. Engineering uses it to design earthquake-resistant buildings that sway to dissipate seismic energy instead of resisting it rigidly and breaking. Technology constantly seeks it in the development of more versatile and innovative products, from graphene to foldable smartphone screens.

Today, this same principle of intelligent adaptation is called upon to address one of the greatest challenges of our time: the energy transition. The electricity system is undergoing a profound transformation and, just like living organisms, must learn to be flexible to integrate new energy sources, ensure stability, and build a resilient future.

A Power System in Transformation

The way we produce and consume energy is changing radically. More and more often, electricity is generated close to where it is used, for instance by rooftop solar panels. This model, known as distributed generation, is essential for the energy transition, but it introduces a challenge: the intermittent nature of these sources requires continuous real-time grid balancing to ensure safety and efficiency. In this scenario, energy flexibility becomes the key capability that allows production and consumption to adapt in response to system signals. Here are the main benefits.

  • Grid stability

    Flexibility is crucial to managing renewable intermittency, helping maintain the instantaneous balance between supply and demand and enabling maximum integration of these sources.

  • Greater resilience

    A widespread network of distributed generation plants increases system resilience, reducing the risk of large-scale blackouts.

  • Participation of citizens and businesses

    Flexibility is not just a technical solution it’s an opportunity for consumers to play an active role. By understanding how it works, households and companies can help balance the grid, turning a necessity into an opportunity.

Flexibility: How It Works, in Simple Terms

Energy flexibility is already part of our daily lives, even if we don’t notice it. But in practice, how is flexibility provided? And where does it come from?
For consumers, energy flexibility takes two forms. A direct approach means we take the initiative for example, choosing to charge an electric car during hours of high renewable generation. An indirect approach involves authorizing a third-party operator (such as Plenitude) to optimize the management of our devices. In this case, the operator may schedule car charging at night when electricity demand is lower.

Where does flexibility come from?

  • From our consumption (Demand Flexibility)
    It’s not about consuming less, but consuming better. This is known as Demand Response: running appliances, charging a car, or adjusting heating during times when the grid has a surplus of renewable energy. Technologies such as smart meters and Building Energy Management Systems (BEMS) make this simple and automatic

  • From energy producers (Supply Flexibility)
    If you have a photovoltaic system, you become a prosumerboth producer and consumer. If you add a storage battery, you evolve into a prosumager: a more advanced profile capable of storing energy and using it when it’s most valuable to you or to the grid.

L'evoluzione dell'utente: da consumatore a protagonista

The evolution of the user: from consumer to protagonist

CONSUMER

Draws energy from the grid to meet personal needs. A passive role: simply consumes the energy supplied.

PROSUMER

Produces and consumes energy. Begins interacting with the grid, feeding in any surplus. Becomes an active node of the system.

PROSUMAGER

Produces, consumes, stores, and actively manages energy flows. Provides flexibility services to the grid in exchange for financial benefits, becoming a true protagonist of the energy transition.

Adopting a flexible energy model generates tangible, broadly distributed benefits and opens up new opportunities for citizens and businesses. Participating in flexibility mechanisms also means accessing new forms of economic value. Users can receive financial rewards for the balancing services they provide to the grid or achieve direct bill savings by adopting more conscious and optimized energy consumption transforming themselves from mere consumers into key players in a more efficient energy system.

 

The Market: A New Value Chain

The value of flexibility arises from the interaction of several actors, each with a specific role.

  • TSO (Transmission System Operator)

    The TSO (in Italy, this role is performed by Terna) manages the high-voltage grid and must ensure system stability. To do so, it purchases quickly activatable energy reserves on dedicated markets.
  • DSO (Distribution System Operator)

    The DSO manages the medium- and low-voltage grids that deliver electricity to homes and businesses. Its need for flexibility is linked to resolving local issues such as line congestion, managed through local-scale markets.
  • Aggregator (or BSP – Balancing Service Provider)

    The Aggregator is a market operator acting as an intermediary, grouping distributed energy resources (such as home batteries, electric vehicles, or industrial plants). By creating an aggregated portfolio, it can offer a significant and reliable flexibility package to grid operators, functioning as a single Virtual Power Plant (VPP).
  • BRP (Balance Responsible Party)

    The BRP, such as Plenitude, is financially responsible for keeping balanced the energy it schedules to input or withdraw from the grid with what is actually exchanged. To avoid the cost of imbalances, the BRP buys or sells energy typically on the Intraday Market to correct forecasts in real time.

Plenitude operates in this market with a dual role. As a Balancing Service Provider (BSP), it is responsible for maintaining balance between scheduled and actual energy injections or withdrawals. As a Balance Responsible Party (BRP), it bears financial responsibility for balancing its portfolio, contributing to overall system stability.

Do you want to find your way through acronyms and concepts?

Read our flexibility glossary.

Learn more

Smart Energy Is Already Here: A Journey Through Everyday Flexibility

Energy flexibility is a revolution already unfolding. It manifests through a synergy of actions and technologies that, often invisibly, reshape our relationship with energy, turning passive consumption into active participation.

This intelligent dialogue with the grid begins within the walls of the home and translates into optimized energy management, thanks to sensors that autonomously regulate heating/cooling and lighting, the control of consumption peaks, and predictive diagnostics for building systems. Solar energy captured by photovoltaic panels is stored in the home battery, ready to be released after sunset. Increasingly, the technological “conductors” of the transition will orchestrate this domestic symphony: connectivity and smart meters that turn the system’s needs into concrete actions that benefit the user.

The journey continues in the garage, where the electric car recharges via latest-generation wallboxes capable of communicating with any photovoltaic system and modulating charging speed according to consumption peaks. In the near future, charging infrastructure will become an active partner of the grid. Thanks to technologies such as Vehicle-to-Grid (V2G) and Vehicle-one-Grid (V1G), the vehicle’s battery will be able to interact with the grid, helping to stabilize energy demand at specific places and times. On a larger scale, the same principle can be applied to industrial plants, which can modulate their production cycles to provide high-value balancing services to the grid.

Plenitude and the Commitment to a Flexible Energy Future

Plenitude has embedded flexibility into its strategy, recognizing it as a crucial asset for enabling the energy transition. The company is involved in numerous projects in Italy and across Europe that explore and implement innovative solutions.

Residential

Plenitude is a key player in major Italian pilot projects aimed at creating local flexibility markets, testing the dynamics of the future energy system. Through 2026, it continues to participate in RomeFlex with Areti and MiNDFlex with Unareti. In these initiatives, Plenitude enables its residential customers to provide flexibility to the local grid by increasing energy fed into it through storage systems or by reducing consumption in exchange for financial compensation.

Industry and Smart Buildings

Through European projects such as FLEX4FACT, Plenitude has developed a cloud platform capable of activating industrial process flexibility. With InCUBE, the company tests smart city and community solutions, such as in the Santa Chiara district in Trento. Plenitude also participates in RomeFlex and MiNDFlex by modulating the consumption of industrial and building clients.

These initiatives demonstrate a concrete commitment to building an ecosystem where flexibility orchestrated by advanced technological platforms becomes the norm. The new energy paradigm is not only a technological challenge but also a cultural opportunity: it redefines the consumer’s role, who transforms from a passive actor into a protagonist of a more democratic and efficient system. Collaboration among energy operators, institutions, companies, and citizens will be essential to fully unlock the potential of this model and build a truly shared energy future.

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