Decarbonisation Technology November 2026 issue

aggregates diverse distributed assets so they can deliver flexibility across many markets, adapting in real time to where the value is greatest. For businesses, the VPP model means assets such as a battery energy storage system (BESS) or a flexible manufacturing process are not locked into a single revenue stream. They could earn from the Capacity Market, participate in frequency response, trade on the wholesale market, and contribute to the balancing mechanism, all managed through a single platform. The result is a stronger business case and an accelerated return on investment for energy assets such as a BESS. A VPP also offers participants greater resilience against any one market shifting and allows them to make a more useful contribution to the electricity system as a whole. Global picture The Enel Group VPP has more than 11 GW of demand response capacity under management. That capacity spans 13 countries and more than 100 demand response programmes. Just as importantly, the VPP aggregates capacity from 8,000 customers across multiple sectors – from hydropower and grid-scale battery storage, through industrial and agricultural users, to major data centre operators and food and beverage manufacturers. In Australia, Enel launched the first VPP under the New South Wales (NSW) Government’s Electricity Infrastructure Roadmap in 2025. This programme uses demand response to firm renewable generation and support grid security during peak periods. In North America, the group manages nearly 5GW of flexible demand response capacity. In South Korea and Taiwan, it is helping drive the evolution of flexibility markets, supporting the transition towards more distributed and renewable-based power systems. In many countries, it works with regulators and transmission system operators (TSOs) to develop programmes that encourage customer participation, while ensuring that TSOs receive appropriate services. These examples show that the need for demand flexibility is global. However, in the UK, with its mature market mechanisms,

sophisticated system operator and a strong industrial base, participation remains well below its potential. The country has the policy ambition and the market infrastructure, but participation must ramp quickly to meet demanding targets. Closing the gap requires rapid take-up from commercial and industrial energy users. The good news is that there is plenty of motivation. Flexibility programmes are revenue- generating, particularly when accessed by value-stacking within a VPP. They support grid stability, which is becoming ever more essential to organisations relying on clean electricity to decarbonise. Moreover, they come with a wider benefit. By supporting a greater proportion of renewables on the grid, organisations help decarbonise power for themselves and other users. That is an important benefit in the context of increasing environmental scrutiny and raised investor expectations. Putting the fizz in These motivations already resonate across a range of sectors beyond the energy-intensive heavy industries that have historically dominated demand response. Carlsberg Britvic, one of the UK’s largest drinks producers, participates in flexibility markets through its production facilities, temporarily switching off machinery or rescheduling a production process to relieve pressure on the grid. In return, it generates revenue against its enrolled capacity and receives advance warning of potential grid stress events, giving it time to act before supply is at risk. For a manufacturer of perishable goods, where unplanned interruptions can jeopardise customer orders, that early visibility is as valuable as the income. Carlsberg Britvic’s experience demonstrates that flexibility comes from understanding your own operations well enough to identify where capacity exists, and the principle is not sector-specific. Severn Trent Water, a regulated operator of critical national infrastructure, has enrolled 5 MW of flexible capacity across seven sites by turning down pumping and treatment processes at agreed times. The utility has already generated more than £670,000 in Capacity Market revenue without any disruption to its operations. If a water company