Smart Talks with Jovan – Season 9, Part 1: Flexibility

In the first episode of the ninth season of Smart Talks with Jovan, I explore one of the most important topics in today’s energy sector — flexibility.

This season is focused on how modern power systems are evolving to integrate renewable energy sources while enabling more active participation from consumers.

My guest is Gráinne O’Shea, Vice Chair of the Eurelectric Working Group on Regulation and Customers and Business Strategy Manager at ESB Networks. With over 30 years of experience across network operations, supply, and generation, she brings both technical depth and strategic insight, along with extensive experience working with regulators and industry stakeholders.

How do you define flexibility today?

From Gráinne’s perspective, shaped by her work both within ESB Networks and at the European level through Eurelectric, flexibility should not be seen as an end goal in itself, but rather as a tool for optimizing the power system.

In practice, flexibility represents the ability to adjust demand and supply over time. However, what becomes clear is that there is no single mechanism that delivers it. Instead, it emerges through a combination of regulatory frameworks, tariff design, flexible connection agreements, and market-based procurement of services.

Different approaches need to be tested, combined, and continuously refined as power systems evolve. Across Europe, most of these mechanisms are still developing, which makes flexibility an area of ongoing experimentation rather than a fully mature solution.

How do tariffs and customer behavior influence flexibility?

One of the key insights is that flexibility is not only a technical challenge, but also a behavioral one.

Customer response plays a critical role. While dynamic pricing is often highlighted as a future solution, practical experience shows that simpler approaches tend to be more effective. Time-of-use tariffs, for example, already deliver tangible results by encouraging consumers to shift their consumption to off-peak periods.

Gráinne emphasizes that if we expect customers to actively participate, the signals they receive must be clear and easy to understand. Real-world pilot projects confirm this. In the case of electric vehicle charging, users responded better to predefined schedules than to complex real-time pricing models.

This highlights an important point: simplicity is not a limitation, but often a prerequisite for meaningful engagement.

Where does flexibility deliver the most value?

Based on practical experience, flexibility works best in clearly defined scenarios.

It can help manage peak demand, address network constraints, and delay investments when future demand remains uncertain. It is particularly valuable in situations where infrastructure upgrades are difficult, slow, or costly to implement.

At the same time, flexibility has its limits. When large volumes are required over longer periods, it can become as expensive as traditional grid reinforcement, without delivering the same long-term benefits.

Because of this, flexibility should be seen as a complementary solution rather than a replacement for grid investment.

What are the main challenges for scaling flexibility?

Scaling flexibility requires more than just technology.

One of the biggest challenges lies in market development. Participants need clear signals and long-term visibility to justify investments. Without that, the business case remains uncertain.

Coordination is another critical factor, especially between transmission and distribution system operators. Actions taken at one level must be aligned with the other to avoid unintended consequences.

In addition, there is a need to build trust in flexibility providers. System reliability depends on their ability to deliver services when needed, which means confidence in performance is essential.

Regulatory complexity and procurement processes add another layer of difficulty, particularly when trying to engage smaller consumers. Again, simplicity emerges as a key success factor.

Conclusion

From this discussion, it becomes clear that flexibility should be understood as a means to optimize the power system rather than an objective on its own.

Its real value lies in combining regulatory frameworks, tariff design, and market-based mechanisms, while continuously testing and refining different approaches as energy systems evolve.

At the same time, flexibility is not purely a technical challenge. Customer behavior plays a central role, and experience shows that simple, clear signals are often more effective than complex pricing models in driving meaningful change.

Flexibility delivers the greatest value in specific, well-defined situations, such as managing peak demand or addressing network constraints. However, it cannot replace long-term grid investments.

Scaling it successfully requires mature markets, strong coordination between system operators, and trust in the ability of flexibility providers to deliver when needed.

Question for the audience

How can we design flexibility mechanisms that are simple enough for customers to engage with, yet robust enough to support system-level needs?