What Localflex actually delivers
The momentum is certainly building around local flexibility markets here in Aotearoa New Zealand, and around Australasia too. With that comes a bunch of emerging conversations — not just about why flexibility matters, but how we actually make it work.
What’s been really encouraging is being in the thick of seeing the mindset shifts — from big-picture vision to the real, operational detail. If you’re part of a network’s operations, commercial, or engineering team, you’ll know exactly how complex flexibility procurement can be. Multiple providers, multiple contracts, verification requirements — it’s heavy lifting. Multiply that across different locations and timeframes, and, yep, it gets complex real fast.
But the good news is, it’s not impossible. It’s very achievable, even thanks to the groundwork that’s already been laid. That’s in large part due to the teams at organisations like EPEX SPOT (our Localflex technology partners), Ara Ake, Powerco, Unison, and others who’ve leaned in early to help shape this alongside Our Energy as a solution.
One marketplace, a whole bunch of moving parts — but all in one place
Localflex is designed to simplify, standardise, and scale the way networks and flexibility service providers engage. It’s a full-market platform that covers the entire process, from onboarding to verification and settlement.
So for those of you in the back seats, here’s what that looks like:
1. Pre-trading and onboarding: visibility from day one
Networks and FSPs register and are approved through a structured onboarding process:
Flexible assets are linked to ICPs and mapped to specific grid nodes
Asset portfolios are automatically created by product and location
Grid topology and constraints are uploaded into the platform to inform future trading events.
Think clean, structured, and efficient — no spreadsheets, no guesswork, and no one-off negotiations. It’s a shared view of who can offer what, where, and when. Sounds good, right?
2. Trading and auctions: simplified procurement in action
EDBs publish ‘buy orders’ for flexibility at specific nodes and timeframes:
Pre-approved FSPs offer in, and the platform runs a transparent auction process
Auctions can be long-term (eg, seasonal) or short-term (eg, day-ahead/intraday) - note, we’re starting with the former here in NZ.
Market outcomes are published for all participants
Think proven, internationally accepted auction formats, configured to meet the realities of electricity distribution environments in our corner of the world, and structured to make participation easy.
3. Verification and settlement: the trust-building step
Metering data is uploaded before and during the event period
Baselines are calculated automatically using agreed-upon methodologies
Delivered flexibility is compared to contracted volumes
Settlement reports are generated for direct payment between EDB and FSP
Because if we can’t verify what happened and settle accordingly, then it’s not a market, it’s a guess.
We’re making flexibility operational
We’re in the thick of it — onboarding EDBs into the platform right now (and FSPs will follow very soon too). With the first Localflex trading events being planned for now, we’re collaborating with planners, engineers, commercial leads, and local communities to implement what is, in essence, a transformative energy initiative.
And we’re building this with the sector, not around it.