What does "flexibility" mean in the context of the energy market?

Flexibility describes the ability to adjust electricity generation or consumption at short notice in response to supply, demand, and price signals. It is becoming increasingly important due to the expansion of volatile renewable energies.

How is the value of flexibility determined?

The value results from the ability to exploit price differences between different time windows (e.g., between cheap and expensive hours). Flexibility can thus monetize the spread between low and peak prices..

Why aren't prices for flexibility rising sharply yet?

Although the demand is growing, new technologies and increasing flexibility in conventional power plants have kept flexibility costs stable so far. However, with the further expansion of renewable energies, an increase in flexibility prices is to be expected.

What role do battery storage systems play in flexibility marketing?

Battery storage systems ensure a balance between supply and demand by temporarily storing electricity. They benefit particularly from price spreads and the possibility of being charged when electricity prices are negative.

How Much Is Flexibility Worth?

We have been using and offering energy storage systems since 2016. We have been involved in flexibility marketing from the very beginning. We are currently observing that the market for battery storage will enter a decisive growth phase in 2025: flexibility has become a valuable commodity, particularly through multi-market strategies and intraday trading as a long-term key value driver.

Multi-market strategies with intraday as a value driver

Flexibility, including that provided by batteries, has become a high-value asset in today's volatile European energy markets. Asset owners and investors are increasingly recognizing that real profits can be achieved not only by participating in, but also by mastering multi-market trading and minimizing degradation costs. This article describes the framework for "portfolio-ready" flexibility marketing and shows what advanced technologies such as The Mobility House Energy's FlexibilityTrader can achieve..

Why flexibility is crucial today

The energy transition in Europe is constantly demanding more flexibility in the electricity system. With the rapid expansion of wind and photovoltaic installations, wholesale price fluctuations are increasing. Conventional business models for battery storage are reaching their limits here. Operators, aggregators, and investors who want to be successful in the medium to long term must actively market the flexibility of their assets and deploy them specifically where they generate maximum value.

High volumes of renewable energy are making daily and intraday electricity prices more dynamic than ever. Batteries can respond immediately to price spikes and imbalances, offering commercial advantages and supporting grid stability. To be successful, you have to stack value – trading intelligently on spot and reserve markets while controlling wear and tear and risks.

Definition: What is the value of flexibility?

The key question for operators is: What sources of income and revenue opportunities can battery storage unlock? The following options are available:

Spot arbitrage: Exploiting price differences between different trading times and markets (day-ahead, intraday).
Control power: Provision of frequency stabilization – increasingly volatile and often difficult to predict.
Grid products: Participation in balancing grid bottlenecks and special tenders

Value is created through effective control of charging and discharging processes in conjunction with market forecasts, price spreads, and the ability to react quickly to signal fluctuations.

To operate battery storage systems in a truly economical manner, a pure focus on balancing power or day-ahead markets is no longer sufficient. The new model for success is multi-market strategies, in which assets switch flexibly between day-ahead, intraday, and balancing energy markets, as well as redispatch products.

Why only net profit counts

Gross spreads only tell half the story. Each cycle costs money—sometimes up to €10/MWh or more. Intelligent trading platforms now take real-time degradation into account for every bid and dispatch order, so portfolio owners see actual returns—not inflated revenues.

FlexibilityTrader: Automated excellence in action

FlexibilityTrader from The Mobility House Energy connects assets directly to the EPEX Spot Market and various transmission system operators, providing:

Direct access to the trading platform for energy and reserves

Execution in milliseconds, with trading possible up to five minutes before delivery
Dynamic, customized strategies to align market signals and asset availability
Full automation: Individual vehicles or batteries are aggregated and then scheduled according to a real-time market plan (see process visualization below). We also use AI-based algorithms for this.

Under the surface: FlexibilityTrader's modular stack

There is a lot going on inside Flexibility Trader:

Signal generator: Uses machine learning and rule-based models to generate trading signals from market data, forecasts, and asset information. Inputs include order book data, price signals, renewable energy forecasts, and much more
Intermarket optimization: Continuously identifies the most promising market for each flexibility offer—fine-tuning between DA, ID, and reserve markets
temporal optimization: Determines the best dispatch solution every few seconds. Combines live market signals with real-time asset data for maximum profit and security

Everything is automated: Strategies can be set in advance and dynamically adjusted to changing market opportunities. The platform is modular, scalable, and specifically designed for B2B portfolios with multiple locations or asset types.

Why intraday is winning and what's next

Intraday markets are setting the pace in Europe today: more liquidity, faster intervals, and higher price spikes than day-ahead—making algorithmic execution and high-frequency optimization a must. Value enhancement across all available markets is the new gold standard.

This is why storage operators can benefit here:

Realize arbitrage opportunities: The ability to dynamically trade minute and quarter-hour products requires modern data management, forecasting, and a powerful IT infrastructure. That's exactly what we offer.
Implementation: Opportunities can be exploited automatically via interfaces (API) to the exchange and continuous rebalancing. Intraday often serves as a "filler product" and minimizes revenue losses from control power or lack of volatility in the DA market.

Conclusion: Storage facilities are becoming trading resources

Electricity storage and aggregated flexibility are no longer passive grid aids, but active trading resources. Intraday has become a real lever for value enhancement. With the switch to 15-minute products and a smart multi-market strategy, operators and investors can significantly increase their earnings potential in the increasingly volatile electricity market.

The role of aggregators, algorithmic optimization, and automated portfolio management tools is growing significantly—and with it, the value potential of well-marketed flexibility.

Further articles in our series will follow shortly:

Intraday excellence: From forecast stack to slippage control

Intraday or reserve? A simple matrix for market prioritization

... and more

Already read?

Energy trading: What is it and how does it work?

FAQ

Market volatility has a direct and strong influence on the price of flexibility in the energy market. When electricity prices fluctuate sharply—i.e., are volatile—there is a greater difference between low and high prices within short periods of time. These price fluctuations increase the value creation opportunities for flexible players such as battery storage systems or flexible consumers because they can supply electricity at times of high prices or purchase it at low prices.
The greater the volatility, the higher the potential for flexibility providers to generate profits through skillful market behavior. Conversely, lower volatility leads to lower price spreads and thus lower revenue opportunities. Flexibility is therefore a valuable and sought-after trading factor, especially in markets with high volatility.
In summary: Market volatility significantly determines how lucrative flexibility offers are because it influences the return from the temporal adjustment of generation and consumption.