Wayne Davies, Head of Flexibility UK at Enel X, shared his insights on maximising returns from participating in the Capacity Market with Energy in Buildings & Industry magazine. You can read the summary below or download the full article here.
As the UK energy system evolves, manufacturers can tap into the growing potential of energy flexibility such as Demand Response and earn stable revenue.
The GB Capacity Market ensures grid reliability by paying businesses to either reduce energy use or generate electricity during periods of high demand. Every year, the National Energy System Operator (NESO) runs two types of auctions:
These auctions set a clearing price per megawatt (MW) per year, offering businesses predictable returns for participating in demand side response programmes.
The 2025 results showed a sharp contrast:
At first glance, the lower T-1 price might seem discouraging -but this is where strategic partners like Enel X can deliver a serious advantage.
Enel X locks in higher rates through long-term market participation.
For example, while the T-1 auction cleared at £20,000/MW, Enel X clients receive £30,590/MW/year -a 53% premium - thanks to better long term pricing. Enel X can also enrol your assets into other energy flexibility markets, providing you with additional revenue opportunities.
As the UK accelerates its energy transition, the value of demand side flexibility will only grow. For UK manufacturers, the Capacity Market offers a low-effort, high-reward opportunity. Enel X, a long-standing market leader, provides access to the best available rates, simplifies market participation, and opens the door to additional energy flexibility schemes.
To get started with demand response and maximise your site’s energy earning potential, get in touch.
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