Are You Getting the Right Price for Your Energy Flexibility?

In an economy where every margin counts, many manufacturers are overlooking a simple, low-risk source of extra revenue and it could be costing them significantly.

Across the UK, flexible energy assets such as on-site generation, battery systems, and controllable loads – from pumps and mixers to heaters and chillers – can earn money in the Capacity Market for being available to support the grid during periods of high demand. It’s a programme designed to reward reliability, not disruption.

But here’s the catch: not all flexibility partners access the same level of value.

Over the past year, we’ve seen several manufacturers earning significantly less than what’s available through the four-year-ahead T-4 Capacity Market auctions, simply because their aggregator only entered them into the one-year-ahead T-1 instead.

The difference has nothing to do with the assets themselves. Both auctions require the same operational readiness and offer the same level of risk. What changes is the price.

T-1 is a short-term auction for capacity needed in the year ahead, often oversubscribed and volatile. By contrast, T-4 auctions secure capacity four years in advance and reward it far more generously – typically paying two to three times more per megawatt.

For a 10 MW manufacturing site, that could mean earning around £200,000 per year through T-1, or more than £600,000 through T-4 – for exactly the same flexibility.

Some flexibility providers focus on T-1 participation for commercial or contractual reasons, while others take a longer-term approach by securing value through T-4 auctions. Because these distinctions aren’t always made clear at the outset, businesses can unknowingly end up with a revenue profile that differs significantly from what might be achieved through T-4 participation.

It’s not about fault, it’s about awareness.

Before agreeing to any flexibility or Capacity Market arrangement, it’s worth asking:

• Which auctions will my assets be entered into?
• What price am I being paid per MW?

These are simple questions, but they can make a six-figure difference to annual flexibility revenue.

Manufacturers are under growing pressure to reduce costs, improve efficiency, and invest in low-carbon operations. The Capacity Market provides a proven, low-risk way to generate new income – but only if you’re getting full value for your flexibility.

The right partner can turn what’s often seen as a technical exercise into a strategic and competitive advantage. Don’t let lack of awareness mean you’re getting paid less for the same contribution.

If you’re participating in the Capacity Market, or planning to, make sure you know exactly which auction your business is enrolled under – and whether you’re truly monetising what your flexibility is worth. If you’re unsure where to start, we can help you assess what’s possible.