In February 2025, SP Energy Networks’ Flexibility Team began a pioneering collaboration with Liverpool City Council (LCC) to explore how Local Authorities can participate in flexibility markets and unlock new value from their assets. One year on, this partnership has become a blueprint for how Distribution System Operators (DSOs) and Local Authorities can work together to accelerate the transition to net zero.
Understanding the Opportunity
Local Authorities hold a diverse portfolio of buildings, energy assets and community infrastructure, yet many face challenges when navigating the emerging flexibility landscape. For LCC, the ambition to reach net zero is clear, but understanding how flexibility services could support that journey required dedicated guidance, technical insight and a clear route through the end‑to‑end process.

Recognising this, SP Energy Networks committed to working closely with LCC to help them understand the opportunities available, the requirements for participation, and the potential benefits for both the council and the wider energy system.
A Hands‑On, Collaborative Approach
Over the past year, the Flexibility Team has delivered a series of workshops, one‑to‑one sessions and technical assessments designed to support LCC through every stage of the flexibility journey. This included:
- Early‑stage exploration, helping LCC understand how flexibility markets work and where their assets could play a role.
- Technical appraisal of council sites, assessing suitability, operational constraints and potential value.
- Guidance on business case development, ensuring investment decisions were informed, realistic and aligned with LCC’s sustainability strategy.
- Practical support navigating our flexibility trading platform, giving LCC the confidence to participate in live services.
This level of engagement has been essential in onboarding our first Local Authority into our flexibility platform. It has also provided invaluable insight into the governance structures, decision‑making processes and operational challenges that are unique to Local Authorities.

Learning That Unlocks Access for Others
Working so closely with LCC has helped SP Energy Networks understand what a typical Local Authority portfolio looks like, the internal approvals required, and the barriers that can slow or prevent participation. These insights are now shaping how we support other councils across our licence area.
As a direct result of this collaboration, we have:
- Published our Local Authority Participation Guidance, a practical resource designed to help councils get started quickly and confidently.
- Developing a tailored flexibility agreement that better reflects the needs, processes and asset structures of Local Authorities.
- Created a dedicated 1‑to‑1 workshop offer, enabling councils to explore their flexibility potential with expert support.
Why Local Authority Participation Matters
Local Authorities have a critical role in delivering a smart, resilient and decarbonised energy system. By participating in flexibility services, councils can:
- Optimise their assets and reduce operational costs
- Generate new revenue streams
- Support local network resilience
- Strengthen their leadership in the transition to net zero
Looking Ahead
Our partnership with Liverpool City Council marks an important milestone in unlocking flexibility across our licence area. The learning, tools and guidance developed through this collaboration will help many more Local Authorities realise the benefits of flexibility and play an active role in shaping a cleaner, smarter energy future.