12/03/2024

Good news for manufacturers in Great Britain as Enel X secures a further 500MW in today’s T-4 Capacity Market Auction.

• The T-4 Great Britain (GB) Capacity Market auction has cleared at the record high price of £65,000 per MW for delivery in 2027 / 2028.
• Enel X has secured 500MW derated, 44% of the total Demand Side Response (DSR) capacity awarded.
• This follows last week’s successful T-1 GB Capacity Market auction where Enel X secured a further 140MW derated of DSR capacity for delivery in 2024 / 2025 at £35,790 per MW.
• These results mean that GB businesses with the ability to be flexible with their electricity consumption or that have battery energy storage or electricity generation assets, could earn an average of £48,600 per MW per year until 2028, if they enrol with Enel X before the deadline.

To find out how much revenue your business could earn, please contact us for a free consultation: enelxuk@enel.com

27th of February 2024 – Enel X has secured 500MW (derated) of Demand Side Response (DSR) capacity in the record-breaking T-4 GB Capacity Market auction which cleared at £65,000 per MW for delivery from the 1st of October 2027 to 30th of September 2028. This continues a record accomplishment of consistently high performance on behalf of their customers in these auctions.

The company had already secured positions at the highest available pricing for the three delivery years before the period covered by this year’s T-4 auction (i.e. 1st of October 2024 to the 30th of September 2027), meaning Enel X can now guarantee clients the greatest return from the Capacity Market up until September 2028.

These strong auction results will enable Enel X to provide participating industrial and commercial businesses with significant DSR revenue, helping them to:

• Offset volatile energy prices and maintain a competitive cost base.
• Achieve greater energy security and independence, protecting business continuity.
• Accelerate their Net Zero ambitions and deliver on ESG (Environmental, Social and Governance) commitments.

The GB Capacity Market is a HM Government mechanism that protects electrical energy security by helping to balance electricity supply with demand during exceptional peaks in energy consumption, for example during an extreme weather event or to compensate for lower than forecast generation. Great Britain’s National Grid (NG) ESO views Demand Side participation as crucial for delivering a secure, sustainable, and affordable electricity system.

Barry Hurst, Head of Sales, Enel X UK & Ireland said:

“Demand Side Response is critical to managing and ensuring security of supply as we build an economy based on an increasingly distributed, renewable, and variable energy system. It can reduce the use of fossil fuels during peak electricity demand or when renewable generation is low and is a valuable tool in the prevention of power outages.”

Hurst went on to say:

“The high clearing prices at this year’s T-1 and T-4 Capacity Market auctions confirm our ability to continue rewarding our customers with the highest payments for being flexible with their electricity consumption. This is significant revenue that our clients can use to offset high energy prices or to invest in onsite energy storage and generation assets, reinforcing business resilience, and accelerating their journey towards Net Zero emissions. As a result, we are experiencing a surge in interest in our DSR programmes.”

Having secured T-4 positions at the record-breaking high price, Enel X can now guarantee qualifying customers with an average of £48,600 per MW per year over the next 4 years (October 1st, 2024, until 30th September 2028).

How Demand Side Response with Enel X works

What is the financial opportunity for your business for participating in the Capacity Market with Enel X?

Revenue estimates are based on Capacity Market participation with Enel X from October 1st 2024 and are subject to eligibility, terms and conditions.

Any business in any sector with the ability to switch on, or turn down, one MW or more of capacity can participate in the Capacity Market and get paid for their flexibility. This could be from a single site or across multiple locations. There is no upper limit if sufficient positions are available.

Businesses that already have energy generation or storage assets, such as CHPs (Combined Heat & Power) and batteries, are ideal candidates for DSR programs. You can also participate by temporarily reducing consumption of everyday equipment such as lighting, HVAC (Heating, Ventilation, and Air Conditioning) systems and refrigeration units.

Hurst concluded:

“Ultimately DSR helps shape sustainable behaviour by enhancing energy transparency, encouraging ‘good grid citizenship’ and providing a practical path towards net zero in Great Britain and beyond.”

Enel X has provided DSR services to Great Britain’s electricity system since 2009 and currently holds the leading position in DSR programmes worldwide, with over 9.5 GW of capacity managed in Europe, the Americas, Asia, and Oceania.

To find out how much revenue your business could earn, please contact us for a free consultation: enelxuk@enel.com