Global Energy Flexibility Markets to Mitigate 1,100GW of Solar and Wind Curtailment by 2040, Unlocking 2,100TWh of Additional Electricity Generation per Year

Grids must not only become larger; they must become more flexible

NEW YORK, March 26, 2025 /PRNewswire/ -- Grid operators are investing heavily in expanding infrastructure to adapt to the proliferation of Distributed Energy Resources (DERs) and to mitigate the intermittency of renewable assets. Capital expenditure is crucial, but flexible operational strategies are now vital to maximize output despite network constraints. As grid congestion increases, operators must manage surplus solar and wind energy efficiently. Markets for 'flexibility'—using distributed generation and storage to stabilize volatile energy supplies—are crucial for adaptability. According to a new report from global technology intelligence firm ABI Research, by 2030, over 200 GW of otherwise curtailed capacity is expected to be exchanged via flexibility markets, and by 2040, newly accessible capacity will reach 1,100 GW, equivalent to 2,100 TWh – worth over US$300 billion today – per year.

"With as much as a fifth of global solar and wind potential currently lost due to curtailment, how grid operators can reduce underutilization of renewables has become as important as, if not more pressing than, how much additional capacity can be installed. While dedicated, at-scale storage adoption remains limited, flexibility markets will offer significant adaptability for otherwise rigid power networks from 2027, as regulations shift to support peer-to-peer and DER-to-utility trading," explains Daniel Burge, Analyst at ABI Research.

Marketplace facilitators, including Piclo, a UK-based flexibility trading platform and auction provider, and NODESMarket, which specializes in creating local markets in partnership with grid operators, are fostering flex trading across key regions, and showcasing the efficacy of market-led approaches for addressing congestion challenges. Additionally, firms such as emsys, Eneco CrowdNett, Next Kraftwerke, AGL, and Stem are playing key roles by aggregating distributed asset capacity into 'flexibility' bundles for trade.

Frictionless flexibility markets will be critical to managing congestion. When paired with utility-scale batteries, long-term storage capacity, and demand-side flexibility incentives, the result will be dynamic, adaptive networks which can draw upon significant edge assets to eliminate the need for curtailment. System operators will benefit from resilient grids, which can better meet rising demand and secure against supply fluctuations. DER owners, given greater agency in the energy market, will be freer to commercialize their assets. "By engaging in flexibility markets and key vendors now, both operators and prosumers will be best placed to fully realize the benefits of these agile, responsive, and resilient networks as they develop," Burge concludes.

These findings are from ABI Research's Energy Flexibility Trading for Utilities, Industries, and Enterprises report. This report is part of the company's Smart Energy research service, which includes research, data, and ABI Insights.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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