An end-to-end solution for industrial sites and stakeholders (FLEX4FACT)

Europe’s energy system is undergoing rapid transformation. Electrification, increasing shares of renewable energy and rising grid constraints are reshaping the operational environment for industrial companies. Industrial flexibility is becoming a strategic capability. It enables companies to mitigate price volatility, improve operational resilience and support grid stability.

Despite significant potential, industrial participation remains limited. This is not due to technological constraints, but to a combination of internal barriers and external framework conditions that shape feasibility and incentives.

There are several key internal challenges:

• Limited energy transparency: Many facilities lack high‑resolution energy and process data, restricting the ability to detect and quantify flexibility options.
• Rigid industrial processes: Continuous, integrated or safety‑critical processes operate within narrow tolerances. Adjustments can threaten quality, safety or throughput.
• Cultural and organisational constraints: Industries prioritise reliability and output. Knowledge gaps around flexibility markets reduce willingness to engage.
• Insufficient automation: Manual decision pathways and low system interoperability hinder rapid activation of flexibility.

Industrial participation is further constrained by external factors:

• Regulatory volatility: Changing market rules, such as the transition to 15‑minute Market Time Units, increase planning complexity.
• Restricted market access: Prequalification is designed for generators rather than consumers, excluding many industrial assets.
• Static network tariffs: Even when consumption supports system needs, charges remain unchanged, reducing economic incentives.
• Rebound effects: Delayed consumption often returns as concentrated load peaks, challenging both operators and grid stability.

With the EU project Flex4Fact, Steinbeis Europa Zentrum and 22 other European partners have developed a possible scenario for industry, focussing on the dynamic adaptation of production processes to the availability of renewable energies while simultaneously integrating on-site energy generation and storage.

Flex4Fact proposes a six‑level maturity model to increase flexibility integration:

• Load and pattern analysis
• Identification of flexible capabilities
• Simulation and quantification
• Integration with on‑site resources
• Cost‑optimised scheduling
• External flexibility exchange (market or bilateral)

Progress requires improvements across three capability layers: visibility, analytical capability and operational integration.

Key enabling technologies include high‑resolution monitoring, AI‑based forecasting, automation via EMS and PLCs, digital twins and energy storage. These tools convert process data into actionable flexibility potential and support predictable activation.Market reforms such as EU‑wide harmonisation (SDAC/SDIC), balancing platforms (PICASSO, MARI), dynamic pricing and emerging local flexibility markets aim to reduce fragmentation and create more accessible participation pathways.

Role of Steinbeis Europa Zentrum

As a partner for exploitation management Steinbeis Europa Zentrum played a key role as a strategic partner in the Flex4Fact project by supporting the development of viable business models to bring the project solutions to market. It promoted collaboration between industrial, commercial and private stakeholders, disseminated the results and ensured the scalability of the project across Europe. With its expertise, Steinbeis enabled the translation of innovative tools into practical, sustainable applications that benefit both industry and energy systems.

It also played an essential enabling role in the management of the entire online presence of the Flex4Fact project, including the website, news updates, stakeholder materials and accessible summaries of results. By translating complex technical findings into clear and actionable narratives, Steinbeis ensured that industrial players, policymakers and technology providers understand emerging opportunities and regulatory developments.

A major contribution of Steinbeis was the Guidebook for the Flexibilization of Industry, a practical handbook that translates the maturity model, technological enablers and regulatory insights into operational guidance. It provides step‑by‑step support for industries seeking to progress towards flexible, energy‑aware operations. Steinbeis Europa Zentrum guaranteed that the project results remain sustainable beyond the project’s duration.

Industrial flexibility will become a key element of Europe’s energy transition. The technical foundations are in place, but deployment depends on coordinated progress across internal capabilities and external conditions. Steinbeis Europa Zentrum, through its integrative and strategic role, contributed significantly to ensuring that flexibility becomes a practical, scalable and valuable asset for European industry.

FLEX4FACT is receiving funding from the European Union’s Horizon Europe research and innovation programme under grant agreement 101058657.

Further Information:

• Funding: European Commission, Horizon Europe
• Förderbudget für alle Partner: 18 million EUR
• Participating countries: Germany, Ireland, Italy, Norway, Spain
• Project duration: 06/2022 – 11/ 2025