The Power of Presence: Why Energy Giants Own the "Resilience as a Service" Frontier

In the high-stakes evolution of the UK energy market, a new model is emerging that moves beyond the simple sale of kilowatt-hours. Resilience as a Service (RaaS) is rapidly becoming the strategic cornerstone for a net-zero economy. As of February 2026, the shift from traditional “keep the lights on” maintenance to a proactive, market-based resilience model is no longer a pilot project—it is a commercial imperative.

While agile tech start-ups and software-led aggregators are vying for a piece of the pie, the incumbent power generation and distribution giants—the likes of National Grid, SSEN, and Drax—hold an almost unassailable lead. Their strength isn't just in their size; it’s in their physical and historical “skin in the game.”

Understanding the RaaS Shift

Traditionally, “resilience” meant over-engineering the grid to handle peak demand or deploying diesel generators during a fault. RaaS flips this. It treats resilience as a flexible, procurable product where local energy resources (storage, renewables, and demand-side response) are used to maintain power during outages or grid stress.

In the UK, the Network Innovation Competition (NIC) has already proven the technical feasibility of this through projects like the SSEN-led RaaS trial. These trials demonstrate that by “islanding” local networks using Battery Energy Storage Systems (BESS), we can maintain supply to consumers even when the main grid fails.

The Incumbent Advantage: Three Pillars of Strength

Existing power generation and network companies possess three specific strengths that make them the natural leaders of the RaaS market:

1. Physical Infrastructure and Asset Mastery

RaaS is not a purely digital product. It requires heavy hardware—massive battery arrays, synchronised inverters, and hardened switchgear. Companies like National Grid have decades of experience managing assets that are now being “digitised.” This deep “physicality” allows incumbents to integrate new RaaS technologies into existing infrastructure with a level of safety and reliability that software-first companies cannot match.

2. The Regulatory “Inside Track”

The UK’s RIIO-ED2 framework explicitly encourages Distribution Network Operators (DNOs) to pivot toward being Distribution System Operators (DSOs). These companies are already regulated to provide a public service. By evolving into RaaS providers, they aren't just selling a product; they are fulfilling a mandated transition toward “Flexibility First.” Their existing relationship with Ofgem gives them a “licence to operate” that provides long-term financial stability for RaaS investments.

3. Deep Data and Predictive Modelling

While a start-up might have a slick app, the power giants have the data. Years of fault history, weather-impact analytics, and demand-profile forecasting allow these companies to predict where resilience will be needed before a fault even occurs. In 2026, we are seeing the “pivot from closed data silos toward open ecosystems,” where big players use their vast historical data to train AI models that can trigger RaaS protocols in milliseconds.

The “Flexible Giant”: Drax’s Pivot to RaaS

A crucial part of this landscape is Drax. While often associated with its historical biomass generation, by 2026 Drax has fundamentally repositioned itself as a leader in Flexibility and Storage.

Dispatchable Power: Drax recently signed a Low-Carbon Dispatchable Contract for Difference (CfD) with the UK government, running from April 2027 to 2031. This contract ensures that Drax provides power specifically when the system needs it most—acting as a massive “service” to grid stability when intermittent renewables like wind and solar fall short.

The BESS Revolution: Drax is no longer just about turbines. In early 2026, they are moving forward with a 260MW Battery Energy Storage System (BESS) portfolio and have recently signed tolling agreements for further capacity. By combining fast-response batteries with long-duration pumped hydro and dispatchable biomass, Drax offers a “tiered” resilience service that can respond in milliseconds or sustain power for days.

The Economic Reality: Revenue Stacking

The true brilliance of RaaS for an existing power company is revenue stacking. A 3MW battery or a dispatchable biomass unit doesn’t just sit idle. When the grid is stable, that same asset can:

Perform frequency response to balance the national grid.

Participate in arbitrage, buying cheap off-peak power and selling it at peak.

Avoid TNUoS (Transmission Network Use of System) charges by shifting demand.

For a generation company, RaaS isn't an added cost; it’s an insurance policy that pays for itself through market participation.

Key Stat: The UK’s first-of-its-kind Energy Resilience Strategy, published in late 2025, highlights that collaboration between operators and the government is essential to shield the system from evolving cyber and climate threats. more details here

The Road Ahead for 2026

As we move further into 2026, the focus has shifted from “Can it work?” to “How fast can we scale it?” With the Clean Power 2030 goals looming, the pressure is on to decarbonise while maintaining a 99.9% uptime.

The companies that will win the RaaS race are those that can bridge the gap between heavy engineering and agile digital markets. The incumbents have the pylons, the permits, and the pedigree. For the Tax the AI community, this is a vital area to watch: as AI takes over grid management, the physical resilience of the hardware—and the companies that own it—becomes our last line of defence.