Detailed Value Chain of Explicit Power Flexibility in Norway

Flexibility is increasingly recognized as a key enabler of a secure, efficient, and decarbonized electricity system. In Norway, extended electrification of heating and transport, full smart meter coverage, and growing grid constraints create a strong need for and a unique opportunity to deploy explicit power flexibility. However, the practical organization of demand-side flexibility remains insufficiently understood, creating uncertainty which can hamper market participation. Based on semi-structured expert interviews with Norwegian flexibility-enabling companies, this study develops a comprehensive synthesis of the Norwegian flexibility value chain as of 2023, covering roles, processes, and technologies from physical assets to flexibility buyers. Important barriers to innovative business models for flexibility enabling were identified and interpreted in light of theories from knowledge sharing and value chain governance. The analysis reveals a generally coherent understanding of the market among the informants, though also a certain immaturity, regulatory uncertainty, and unclear role definitions, leading to potential syntactic, semantic, and pragmatic knowledge boundaries among stakeholders. The paper shows that the Norwegian flexibility value chain, as of 2023 and described by the participating companies, combined modular and market-based governance structures. These structures may foster innovation, reduce coordination barriers, and support the transition from pilot projects to scalable, commercial flexibility markets.