Be Flexible. Get Paid.

Any site or organisation that can temporarily reduce its energy consumption could receive income for its flexibility through the UK Capacity Market. But what is the Capacity Market — and how could your organisation benefit?

The UK Capacity Market is an HM Government-sponsored programme designed to protect the security of the electrical supply in the UK. A form of demand-side response (DSR), its purpose is to ensure that a reliable supply of power can be maintained to homes and businesses across the country during exceptional peaks in demand, or unplanned generation outages.

The Capacity Market is National Grid’s last line of defence to prevent blackouts. While it has not been called on since its 2014 launch, it remains a critical part of the UK’s energy infrastructure. Participants are paid for being on standby, providing a virtual safety net should a major grid event occur in the future.

Additionally, the Capacity Market plays an important role in the UK’s journey towards Net Zero. As we transition to renewable sources of electricity, the Capacity Market can provide a backup supply should demand exceed the amount of green energy available at a given moment in time. This allows for less frequent use of fossil fuel power stations, and avoids significant carbon emissions.

Organisations can participate using many types of equipment commonly found at larger businesses. For instance, small changes in lighting, heating, ventilation and air conditioning (HVAC) systems or refrigeration units can make a big difference in the event of a grid emergency. Sites with other high-energy processes, such as industrial metallurgy or certain types of manufacturing, are ideal candidates. Additionally, switching to energy storage systems or backup generators can further help reduce stress on the grid.

Potential earnings through the Capacity Market are calculated based on a price per megawatt (MW), set during yearly auctions. Using estimated figures, a manufacturer with a 7MW flexible load might stand to earn £1.5 million gross revenue over five years, while a business spread over multiple sites, with a 4MW flexible load, could earn £794,000 in the same period.

Entry to the market can be complex, however, requiring testing, enablement and pre-qualification for full participation. Navigating this requires expertise not necessarily found in-house. That’s why Enel X provides managed access to the Capacity Market. We secure the maximum Capacity Market positions at the best price at auction, make them available to our customers, and manage the process from start to finish to remove the complexities, and protect against any underperformance penalties.

"The revenue stream that this has provided for our business is very, very, very significant over the last six to seven years. It’s really staggering what’s available for very little effort."

— Production manager, aggregates manufacturer

Enel X is the world leader in demand-side response services, with nine gigawatts under management. Enjoy the security, reputation and expertise that comes with an Enel Group company partnership – download the brochure to learn more.