Guidance

Extension of energy smart mandate to battery energy storage systems

Published 4 November 2026

Factsheet relating to the Energy Independence Bill.

Summary

The Energy Independence Bill amends the Energy Act 2023 to allow government to introduce secondary legislation establishing a smart mandate for battery energy storage systems (BESS).

Energy smart appliances (ESAs) give consumers the choice to use automation to shift more of their electricity use to off-peak times. Consumers will retain the option not to use a device’s smart functionality. Accelerating the uptake of consumer-led flexibility (CLF) will help consumers reduce their electricity bills.

Why are we legislating?

In order to help drive the uptake of CLF, government is making use of existing Energy Act 2023 powers^{[footnote 1]} to legislate via the first phase ESA regulations^{[footnote 2]} that EV charge points, heat pumps and certain other heating appliances must have smart functionality. These Bill provisions would enable powers to legislate similarly for a smart mandate for BESS, ensuring a cohesive approach is taken to regulating all relevant ESAs that offer consumers the greatest potential for benefiting from flexibility. Doing so will help realise the full potential of CLF, which is necessary to achieve our net zero ambitions whilst cutting energy bills.

In 2025, following positive feedback from stakeholders, we confirmed that we will pursue a primary legislative power giving ministers the option to establish a smart mandate in relation to BESS, in the event that the BESS market does not evolve, such that smart capability is commonplace, with sufficient pace^{[footnote 3]}.

What are the government’s objectives with this measure?

This will provide a further legislative means to help unlock the potential of CLF to support the delivery of cheaper, homegrown clean energy and a fairer deal for consumers.

Government seeks to drive the growth of the ESA market, including in smart BESS, encouraging consumers to be part of a more flexible electricity system that fully integrates renewables, rewards consumer participation, and strengthens our energy security.

How will this measure deliver the objectives?

This measure means that government can, if necessary, require that BESS placed on the market in Great Britain must be sold with smart functionality.

The BESS market in Great Britain is expected to grow year on year through to 2030. Driving the uptake of BESS with smart capability will make it easier for consumers to choose to shift their electricity usage to off-peak hours, which in turn minimises the amount of generation and network infrastructure that needs to be built. The Clean Power Action Plan recognised that 10-12 GW of CLF capacity is possible^{[footnote 4]}.

By using automation to participate in CLF, it is easier for consumers to benefit from lower electricity bills. Households that do not generally use electricity at peak times could save over £200 a year by switching from the price cap to a tariff that changes through the day based on market rates^{[footnote 5]}. Using smart technologies to avail of flexibility services can lead to even greater bill savings.

1. Energy Act 2023, Part 9, Chapter 2 (Energy smart appliances) ↩

2. DESNZ (2025) ‘Smart Secure Electricity Systems (SSES) Programme: first phase energy smart appliances regulations’ ↩

3. DESNZ (2025) ‘Delivering a smart and secure electricity system: implementation: government response’, page 20 ↩

4. DESNZ (2024) ‘Clean Power 2030 Action Plan: A new era of clean electricity’, page 98 ↩

5. DESNZ, Ofgem and NESO (2025) ‘Clean Flexibility Roadmap’, Chapter 1: Consumer-led flexibility ↩