NZ's first local flexibility market goes live as four EDBs join Our Energy for Localflex launch
Unison Networks, Horizon Networks, Powerco and Vector are joining market operator Our Energy to trial a new way of managing electricity demand and supporting a more efficient, resilient energy system.
New Zealand's first local flexibility market, Localflex, will officially launch on 11 August 2026, with electricity distribution businesses Unison Networks, Horizon Networks, Powerco and Vector joining market operator Our Energy to trial a new way of managing electricity demand and supporting a more efficient, resilient energy system.
The first live flexibility competitions will run from 19 August to 2 September, enabling qualified providers of distributed energy resources such as batteries, solar systems, electric vehicle chargers and controllable electricity loads to compete to provide local network support where and when it is needed.
As electrification drives increased demand, it's becoming more challenging for local electricity networks to meet peak demand levels in some areas of their network, or at specific times.
Flexibility services help address this by enabling electricity distribution businesses to access capacity from connected resources when and where it is needed, reducing pressure on the network and helping defer investment until it is genuinely required. This supports a more efficient electricity system and helps keep long-term network costs lower for customers.
To help put this approach into practice, four of New Zealand's electricity distribution businesses, Unison Networks, Horizon Networks, Powerco and Vector, are working alongside Our Energy to launch Localflex, Aotearoa New Zealand's first local flexibility market, with support from Commerce Commission Innovation and Non-Traditional Solutions Allowance (INTSA) funding.
Based on a model already established in the UK market, Localflex is a structured, auction-based marketplace that enables electricity distribution businesses (EDBs) to procure flexibility services from distributed energy resources (DERs) connected to their networks (including batteries, solar, EV charging infrastructure), controllable load (such as industrial demand response or hot water control), and behind-the-meter generation. Flexibility Service Providers (FSPs) can also bid to install new assets (such as batteries) to meet the need. Localflex provides a transparent way for networks to signal where and when support is needed, and for qualified flexibility service providers to offer services in response.
Industry collaboration
Localflex is a market-based model to improve affordability for customers and network efficiency. Its launch is the result of more than 18 months of collaboration between participating EDBs, Our Energy and flexibility service providers. Together they have developed common market products, agreed guidelines, prepared network data and built the capability needed to support a local flexibility market in New Zealand.
The collaboration reflects a shared view that standardised approaches will help flexibility markets develop more efficiently and provide a more consistent experience for market participants.
First competitions
The first Localflex competitions will run from 19 August -2 September 2026, following the pre-qualification window in July and a Wellington-based launch event on 11 August. Through the Localflex marketplace, EDBs can connect with providers that have the technology and capability to help manage peak demand on the network, while giving those providers a way to realise value from the flexibility they can offer.
The competitions will test how a market-based approach can unlock flexibility services where and when they are needed, helping participating EDBs make better use of existing network capacity while supporting a more efficient energy system. Initial results and next steps will be announced in late September.
Localflex gives EDBs a repeatable, market-based mechanism to:
• manage local congestion at specific places and time windows;
• defer or avoid some network investment where a flexibility-based solution is more efficient;
• unlock new value streams for customers and third parties who own, or want to invest in flexible assets, or who can modify their electricity use
Quotes
Our Energy
“Localflex is about creating a practical, transparent market that connects local network needs with the growing capability of distributed energy resources, and the ability to flex peak demand. Working with Unison, Horizon Networks, Powerco and Vector shows what is possible when the sector collaborates around common rules, standardised products and a shared ambition to unlock flexibility for Aotearoa’s electricity system.”
John Campbell, Founder & CEO, Our Energy
Unison Networks
“Localflex gives us a practical way to manage network constraints more efficiently by accessing flexibility at the right time and location. That means we can make more prudent investment decisions and defer traditional network investment where appropriate, while creating new opportunities for those with flexible assets to support the network and share in the value they provide.”
Gagan Chadha, General Manager Networks & Operations, Unison Networks
Powerco
“Flexibility is a key way Aotearoa can use electricity more efficiently, and ensure we can electrify affordably. Localflex is a good step towards establishing flex – bringing electricity networks and customers together to solve specific network constraints.”
Ryno Verster, DSO Programme Director, Powerco
Vector
“As New Zealand’s largest electricity distribution business we're committed to collaboration across the sector to improve efficiency and affordability for customers. Jointly establishing Localflex is the latest example, and we're excited about its potential to help us deliver flexibility solutions in Auckland that create a more dynamic, efficient, and customer-responsive electricity system.”
Steve Heinen, General Manager Asset Management and Network Planning.
Horizon Networks
“For regional networks, collaboration is key to making new market approaches practical and scalable. Localflex allows Horizon Networks to explore how flexibility can support a smarter, more resilient network, while giving customers and flexibility service providers new opportunities to contribute to local energy solutions that benefit their communities.”
Ajay Anand, the Chief Executive of Horizon Energy Group
ENDS