The case for a local flexibility marketplace
….why we need a smarter approach
Our global energy system and its regulatory environments are changing, and so are the expectations on electricity networks and electricity distribution businesses (EDBs).
Potentially significant increases in peak demand, electrification, and a greater and faster uptake of distributed energy resources, such as solar and batteries, all mean that traditional, infrastructure-first investment solutions are insufficient. Smarter, digital and flexibility-first infrastructure is also needed to help networks, and their emerging Distribution System Operator (DSO) teams, lead this transition.
“I’m pleased to share (that’s the understatement of 2025) that Our Energy is now rolling out Localflex, New Zealand’s first local flexibility market, in Aotearoa via an international collaboration with EPEX SPOT (wth expansion rights outside of New Zealand in our sights too).”
Why flexibility isn’t a feature — it’s the future
I’ve spent the past few years leading Our Energy through deep change. We’ve worked alongside forward-leaning networks, intermediaries, engineers, and market experts to understand what the grid of the future really needs. And one thing has become clear: flexibility is no longer a nice-to-have — it’s the foundation of a functional and sustainable energy system. We’re no longer asking if flexibility is necessary. We’re asking how fast we can unlock it!
Whether it’s shifting demand, storing excess solar, or optimising EV charging, flexibility is how we extend the life and performance of the grid, without always needing to build our way out of pressure points. With support and sector leadership from organisations like Ara Ake and FlexForum - thank you - the momentum behind this shift is accelerating.
Global thinking, local delivery
When we set out to build a local flexibility market for Aotearoa, we had two options: develop our own, which is where we began, or find a world-class solution and bring it to Australasia. We did our research, and what we saw in EPEX SPOT’s Localflex was a proven, modular platform used across European markets, and a very clever, practical and good team of humans. Collaborating with EPEX SPOT means we can deliver faster, with confidence, and focus Our Energy on what really matters: enabling transformation here in Aotearoa through tailoring Localflex for New Zealand’s unique regulatory, market, and community needs—with future plans for expansion into Australia too.
So what is Localflex — and why should networks care?
Think of platforms like Trade Me or eBay, but for demand flexibility: Localflex is an independent, online marketplace where:
Networks can broadcast and bid for solutions to location-specific needs
Pre-approved flexibility service providers (FSPs) can offer in to meet those needs
Auctions or competitions are fair, transparent, and repeatable
Settlement and verification are streamlined
Everyone gains visibility and confidence
Built for electricity networks and backed by global expertise, we’re rolling out Localflex with several of New Zealand’s leading EDBs, including Powerco and Unison. Thanks for your trust and early adoption in this space! We need leadership to make this work, and your organisations are shining a light on how the industry can show up for its customers’ and communities’ future. We’ve looking forward to ‘go live’, which is just around the corner after several months of market setup activities, and starting to prove how easier procurement processes and broader participation for flexibility can benefit us all.
Looking ahead: a smarter, more flexible energy system
As New Zealand’s EDBs progress towards enabling and embedding DSO functionalities, where local flexibility and distributed energy resources are a feature (rather than a bug) for network planning, the need for scalable, independent platforms is clear. Localflex isn’t just about solving today’s constraints. It’s about creating tomorrow’s system — one that’s transparent, fair, and flexible by design.
And, crucially, this isn’t just about the tech. This is about culture, leadership, and the willingness to do things differently. To paraphrase a famous economist: ‘when the facts change, I change my mind; what do you do?’
An invitation to New Zealand’s electricity networks’ leaders
This is a moment of choice for Aotearoa’s electricity networks. You can wait. Or you can lead.
If you’re ready to drive this transformation — not just in your region, but as part of a national shift — Our Energy would like to hear from you.
Let’s create the conditions that unlock local solutions, protect consumer trust, and ensure our electricity infrastructure remains fit and affordable for the future. It starts with you - the ones bold enough to make it real.