Social housing tenants could benefit from new flexibility markets through a pioneering project that links energy efficiency retrofits to grid flexibility.

SNUG (Smarter Network Upgrades) is a UK Power Networks-led project creating a scalable route for social landlords to participate in energy flexibility markets while retrofitting homes with proven energy efficiency measures. The Centre for Sustainable Energy is leading the social landlord engagement and co-design work, ensuring the proposition works in practice for both landlords and tenants.

The project addresses a critical gap in the energy transition. While the electricity grid urgently needs flexibility to support the electrification of home heating, social tenants are typically unable to participate in flexibility services. Yet social landlords are already delivering energy efficiency retrofits across their housing stock.

SNUG connects these two realities by exploring how retrofit programmes could contribute to peak demand reduction – a currently underutilised flexibility product – and generate payments for social landlords where flexibility markets exist.

Extensive engagement with social landlords

During the project’s Discovery and Alpha phases in 2024-2025, CSE engaged with around 50 social landlords across the UK Power Networks region, including local authorities and housing associations, to understand their needs, perspectives and how best to design this opportunity for them. This iterative engagement was central to shaping a proposition that works for both landlords and tenants.

The Beta phase, starting in April 2026, will trial the proposition directly in homes, finalise models and develop resources to support social landlords and tenants.

Speaking about the project, Julia Oggioni, local net zero research lead at CSE said: “Social housing tenants have been systematically excluded from flexibility markets, despite having the most to gain from lower energy costs. SNUG turns this around by showing how energy efficiency retrofits, which social landlords are already delivering, can create valuable flexibility.”

Luca Grella, head of innovation at UK Power Networks, said: Supporting vulnerable customers is at the heart of our innovation strategy, and SNUG is a prime example of how we can rethink flexibility to make the energy transition fairer for everyone. Social housing providers are already investing in improving their homes, and this project shows how those upgrades can also unlock new value through flexibility. The extensive engagement CSE has led with social landlords has been instrumental in shaping a proposition that is both practical and scalable across the sector.

Building on CSE’s Smart and Fair programme

The project is funded through Ofgem’s Strategic Innovation Fund (SIF) and brings together UK Power Networks, Northern Powergrid, Sia Partners, the Centre for Sustainable Energy, the University of Strathclyde, PNDC, Norwich City Council, the London Borough of Hammersmith and Fulham, E.ON and Utilita.

CSE’s Smart and Fair programme has been tracking fairness in the energy transition since 2019, including research that revealed clear evidence of inequality in flexibility markets. Throughout this work, we’ve built a strong track record of co-developing solutions with the people on the ground responsible for delivery, whether that’s energy advisers, local authorities or social landlords. SNUG builds on this expertise to create practical solutions that centre on social justice.

With the Warm Homes Plan highlighting the increasing role for distribution networks to support local delivery of energy efficiency, SNUG will explore how these partnerships can work in practice to benefit vulnerable consumers.