A major shift in the UK energy market will now allow small-scale renewable generators – from community solar farms to wind turbines – to sell electricity directly to businesses at scale.
The change, driven by rising demand for direct supply, and enabled by Ofgem and Elexon’s new P442 ruling, is set to level the playing field for small clean energy projects competing against big utility corporations.
At the core of this transition is Enosi, a clean-tech innovator, who has just been approved as an Exempt Supply Notification Agent (ESNA). Enosi’s Powertracer platform can accurately track and match electricity generated by small-scale projects with customer demand in real-time, while balancing the remaining volumes in the wholesale market.
What this means for the UK’s renewable energy future
- A breakthrough for small generators: Until now, direct supply, technically known as licence-exempt supply, was held back by outdated processes that made it costly and complex. Powertracer automates the fine-grained energy matching that regulators require, so small generators can easily sell directly to customers.
- Niche to mainstream: License-exempt supply has existed for 20 years in the UK, but only as a niche. By enabling accurate, real-time matching of supply and demand across multiple sites, Enosi’s Powertracer turns this into a scalable model, unlocking new value for local energy projects, businesses and communities.
- Faster progress on net zero: Local energy projects can get a better price for their electricity – accelerating the growth of clean energy uptake in the UK and supporting businesses looking to hit their sustainability goals.
- Cheaper clean energy for businesses: Direct supply does not attract many market levies, cutting costs for both sides. For generators and their direct customers, savings can reach around £60/MWh in non-applicable levies, which can be realised through their energy supplier contracts.
How it works
Matching supply and demand from small projects has always been difficult. Until recently, the industry lacked the technology to distinguish what was truly supplied directly from a small generator.
The key principle is that when the energy produced by these small generators is consumed by their customers at the same time, these supply and demand volumes cancel out in the wholesale energy market. But of course, the supply and demand don’t always match; making it difficult to tease out how much energy was supplied under these direct arrangements.
Enosi’s Powertracer solves this. Built over six years, its “many-to-many” matching engine allows multi-site and multi-source contracts, automates settlement, and submits the results to Elexon’s BSC (Balancing and Settlement Code) Systems. This turns what was once a costly, manual process into one that is scalable, streamlined, and cost-effective.
Evolve Energy is already putting Powertracer to work and is the first supplier to contract with Enosi’s ESNA service – matching small-scale generators with customers’ loads to deliver value on both sides.
Steve Hoy, CEO at Enosi, said: “Enosi is all about making renewable energy accessible to everyone. This initiative makes it easier for small scale generators to find buyers for their energy, and get a better price for it. The other side of the coin is that businesses and communities can now tap into these local generators.
“We’re very pleased to be working with Evolve to continue to support the UK’s renewable energy transition; matching clean energy directly between generators and customers.”
James Hall, COO at Evolve Energy, said: “We’re excited to be entering this new phase in our partnership with Enosi. We’re already seeing the value of Powertracer in our business and their accreditation as an ESNA is the logical extension of the software technology they have built.”