Enel X invests in Great Britain’s electricity grid security with a further 520MW of Demand Side Response awarded in this year’s T-4 Capacity Market auction

• The T-4 Great Britain (GB) Capacity Market auction has cleared at the price of £60,000 per MW for delivery between October 2028 and September 2029.
• Enel X has been awarded 520MW (derated) of Demand Side Response (DSR) capacity.
• While today’s auction is for delivery four years from now, Enel X can already offer eligible businesses an incremental revenue stream worth up to £218,590 per MW for the period from 1st of October 2025 until 30th of September 2029.
• Positions are limited and are subject to enrolment within Enel X deadlines:

31st March 2025 for onsite generation customers (including CHP).
31st May 2025 for load curtailment customers.

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

London, 11 March 2025 - The T-4 GB Capacity Market auction has cleared at £60,000 per MW per year. This is the 3^rd consecutive year that the auction has cleared above £60,000 per MW per year signalling the ongoing importance and value of the T-4 auction. Enel X has secured 520MW (derated) of Demand Side Response (DSR) capacity as the company continues to invest in essential grid flexibility services to help defend Great Britain’s energy security.

Wayne Davies, Head of Flexibility UK & Ireland at Enel X commented on the outcome of the auction:

"Many commercial and industrial scale energy users are not aware that their energy assets can serve a dual purpose: powering their operations while supporting national grid stability. Through participation in the Capacity Market, with very little effort they can support the balance of electricity supply and demand at critical times. Why is this important? It helps protect their own business continuity by reinforcing grid reliability, reduces reliance on fossil fuel generation, which is good for all of us, and provides participating businesses with a regular, bankable source of income. It’s a triple win.”

Davies added:

"The continuing trend of high clearing prices in the T-4 Capacity Market auction represents a really compelling commercial opportunity for businesses with flexible electricity capacity. In our experience, most businesses tend to have more flexibility than they may realise that can be put to good use. It benefits the grid, benefits businesses and benefits the economy.”

The scenario below illustrates how much a typical Capacity Market participant could earn with Enel X over the next four years:

Davies concludes:

“Flexibility is an essential component of renewable-energy-powered electricity grids. It smooths out the peaks and troughs that may otherwise challenge grid stability.

By incentivising businesses to adjust their energy usage when the grid needs it most, energy flexibility programmes like the Capacity Market are key to the transition to a low-carbon future, grid reliability and cost-effectiveness for all electricity consumers.”

The Capacity Market mechanism exists to defend Great Britain’s electrical energy security by helping to balance supply with demand, especially during times of grid stress. Great Britain’s National Energy System Operator (NESO) views it as crucial for delivering a secure, sustainable, and affordable electricity system.

Energy generation assets, such as CHPs and back-up generators, or storage assets such as battery energy storage systems (BESS), are ideal candidates for the Capacity Market. It is also possible to participate by temporarily curtailing the electrical consumption of equipment such as compressors, HVAC (Heating, Ventilation, and Air Conditioning) and refrigeration units.

Reducing stress on the electricity grid helps to prevent interruptions to the electricity supply to homes and businesses nationwide. By managing their electricity flexibly, participating businesses receive significant financial payments for supporting grid stability. Flexible capacity can come from a single site or can be aggregated across multiple locations. There is no upper limit if sufficient positions are available. Payment is made to businesses registered to participate and is not subject to grid events occurring.

Participating in GB’s Capacity Market gives commercial and industrial businesses a significant advantage over non-participants by:

1. Offsetting volatile energy prices and maintaining a competitive cost base.
2. Achieving greater energy security and protecting business continuity.
3. Accelerating their Net Zero ambitions and delivering on ESG commitments.

Enel X has been providing demand side response (DSR) services to Great Britain’s electricity system since 2009. The core offering in the UK and Ireland is built around maximising the commercial and environmental rewards available from energy flexibility programme participation. By optimising how and when energy is consumed, Enel X enables commercial and industrial scale energy users to extract value from the energy markets by leveraging their flexible energy assets in ways that support a greener, more stable and resilient electricity grid.

A more detailed briefing on GB’s Capacity Market is available by request as a by-lined article and / or via interview with Wayne Davies, Head of Flexibility, UK and Ireland, for Enel X.

Enel X Global Retail is Enel Group’s business line dedicated to customers around the world with the aim of effectively providing products and services based on their energy needs and encouraging them towards a more conscious and sustainable use of energy. A world leader in the field of energy supply, energy management services, and electric mobility to foster electrification, it accompanies all its customers through their energy transition, developing value-creating solutions. Enel X Global Retail offers an ecosystem of sustainable, efficient, easy-to-find, personalized products and services built around customer needs. Enel X Global Retail provides electricity, integrated and innovative energy services to more than 55 million customers worldwide, households, small offices, enterprises, and municipalities. Furthermore, around the world, it offers flexibility services aggregating 9 GW and has installed around 3 million lighting points as well as 28,400 owned public charging points for electric mobility.

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