The energy market in the UK is evolving, with businesses increasingly exploring onsite renewable generation and storage to reduce costs, manage carbon emissions, and take advantage of energy price volatility. However, complex regulations have often been a barrier to realising the full potential of these systems. This is where Modification P415 comes into play.
P415 is a key change to the Balancing and Settlement Code (BSC), enabling businesses to monetise their onsite flexibility through Virtual Trading Parties (VTPs) such as Wattstor, rather than through their energy supplier. This new framework enables energy generated onsite (or low cost grid electricity) to be used onsite or sold back to the grid, significantly improving return on investment (ROI) for solar and battery storage projects.
P415 provides I&C businesses the opportunity to benefit from wholesale market trading. In its most simple form, this enables the site to consume grid electricity when prices are low (or negative) and sell energy to the grid when prices are high.
Here’s why this matters for businesses considering, or currently using, onsite renewables:
- Increased Revenue Opportunities
By opening access to the wholesale market, P415 allows businesses to monetise their flexibility through the Podium platform whilst maintaining their existing electricity supply contract. Traditionally, excess energy generated onsite had limited outlets, often being spilled to the grid at low rates with solar cannibalisation reducing export revenues year on year. The Wattstor Podium platform allows businesses to take full advantage of P415 without paying a third party:- Access Higher Market Prices: Instead of settling for low export rates, businesses can sell their surplus energy at competitive wholesale prices, which are often more lucrative.
- Optimise Energy Usage: By storing energy in onsite batteries, businesses can sell during peak demand periods when prices spike. This significantly increases revenue potential.
- Take Advantage of Negative Prices: In addition to selling during peak times, businesses can also optimise their consumption of electricity to take advantage of negative prices, which essentially means free electricity, or being paid to use electricity.
- Size is no matter: System size is no longer a barrier to entry. All Wattstor systems can participate in energy trading regardless of system size. Historically, smaller sites have been overlooked in terms of their ability to contribute to trading or grid services The P415 modification and the involvement of VTPs means that ANY sized system can benefit without the need for aggregators
For example, a business generating solar power during the day might find its local consumption is lower than its output. Instead of losing value, it can store that energy and consume it later in the evening or sell to the grid when demand and prices are higher.
- Enhanced Cost Savings
Previously, access to the wholesale electricity market and energy trading was reserved for licensed suppliers. With P415, businesses can offset their energy consumption by directly trading their onsite flexibility and generation through Virtual Trading parties. This could significantly reduce reliance on grid electricity and associated costs, protecting businesses from price volatility in the energy market. - Stronger Business Case for Renewables
The improved economics of onsite generation under P415 accelerates paybacks and IRR for renewable energy investments. Businesses aiming for net-zero targets now have an even clearer path to achieving sustainability while benefiting financially. - Best of Both
Business leaders and brokers have worked hard to find the best possible contracts for import costs. The P415 modification means you can continue with your existing supply contract or fixed import rate, or shop around should you choose to, while Wattstor generates trading value in the background as your VTP.
What Should Businesses Do Next?
Ready to maximise the value of your renewable energy project? Wattstor is pioneering this space and is the leading VTP in the UK.
Our team of experts are ready to work with industrial and commercial businesses today to help take advantage of the opportunities presented by the P415 modification and price volatility.
Get in touch today to explore the ways your business can benefit from partnering with Wattstor and unlock new revenue streams.