2025 Trends in Behind-the-Meter Storage and Renewables in the GB Energy Market

In January, we brought together industry experts and key players for our second London Gridcog Unplugged event—an evening of networking, energy discussions, and an insightful panel on behind-the-meter (BTM) trends shaping the UK in 2025.

The panel featured three distinct perspectives on BTM innovation: James Spires, Head of Net Zero Estates and Infrastructure at Mitie, offering deep customer-side expertise from the UK's largest facilities manager; Wayne Davies, Head of Flexibility UK & Ireland at Enel X, representing a global energy leader in demand-side flexibility; and Robert Moore, Chief Business Development Officer at Connected Energy, pioneers in second-life battery storage solutions. Our own Genna Boyle, CCO and Head of EMEA, moderated the panel.

Here are the top three trends and insights in BTM storage and renewables that are shaping the GB energy market.

Market Reform: P415 and the Road to Zonal Pricing

Regulatory changes are already creating ripples in the BTM space, with the implementation of P415 proving to be a game-changer. One speaker estimated that this new mechanism—designed to enable independent aggregators to access the Balancing Mechanism—was driving 30-40% more value for assets by unlocking previously inaccessible revenue streams. This is a significant step forward in making flexibility markets more accessible and lucrative for BTM assets.

Looking further ahead, the potential introduction of zonal pricing by 2030 was identified as a transformative shift for the UK market. While the idea has generated some investor concern, particularly regarding the redistribution of value across different regions, the panel pointed to successful zonal markets in Italy, the US, and Australia as evidence that this model can drive smarter infrastructure deployment and foster local energy innovation. By creating price signals based on grid congestion and generation availability, zonal pricing could accelerate the adoption of flexible assets like batteries and demand-side response while making investment in local energy resources more attractive.

Co-Location: The Future of Smarter Infrastructure Deployment

A key takeaway from the discussion was the growing need for co-location strategies that place demand and generation assets in closer proximity. The concept was brought to life with the suggestion to “plonk all the data centres in Aberdeen”—a tongue-in-cheek reference to the high availability of wind generation in Scotland, where curtailment remains a significant challenge due to grid constraints. This idea underscores a broader theme: energy consumers are shifting priorities from cost efficiency alone to resilience, security of supply, and sustainability.

To address these emerging needs, businesses are exploring solutions such as private wire networks—direct connections between on-site renewable generation and demand loads—as well as more localised energy systems that integrate storage, demand flexibility, and renewables. The discussion highlighted that co-location isn’t just a technical challenge; it’s also a commercial one, requiring innovative business models and regulatory frameworks to ensure feasibility and scalability.

Batteries: Strategic Investments vs. Purely Financial Decisions

The conversation around batteries reflected the evolving landscape of BTM storage, where business cases are increasingly nuanced. While market opportunities for BTM assets continue to grow, one viewpoint was that businesses shouldn’t invest in batteries unless they have a resilience or capacity requirement. The reasoning? Payback periods remain lengthy—still at six years or more—making pure financial returns a weaker driver for investment.

Instead, successful battery deployment hinges on several key factors:

• The right implementation strategy: ensuring the system is optimised for revenue stacking and operational efficiency.
• The right route-to-market partners: selecting aggregators or flexibility providers who can maximise participation in markets like frequency response, capacity markets, and peak shaving.
• The right cost of capital: given the capital-intensive nature of battery storage, access to low-cost financing can make or break a project’s viability.

Ultimately, while BTM battery storage is an important piece of the energy transition puzzle, it is most valuable when aligned with broader business objectives—whether that’s reducing reliance on the grid, ensuring uptime for critical operations, or supporting net-zero commitments.‍

Wrapping Up: A Pivotal Moment for Behind-the-Meter Solutions

‍The consensus from the panel was clear: behind-the-meter resources are no longer optional—they are becoming essential for businesses navigating the UK’s evolving energy landscape. As infrastructure bottlenecks and grid constraints become more pronounced, BTM solutions offer a way to enhance resilience, unlock new revenue streams, and support decarbonisation goals. However, success in this space will depend on navigating regulatory changes, adopting smarter co-location strategies, and making strategic—not just financial—investment decisions in storage and flexibility.With a rapidly shifting policy environment and growing corporate focus on energy security, 2025 is shaping up to be a critical year for BTM innovation in the GB energy market. Now is the time for businesses to engage, adapt, and capitalise on the opportunities ahead.

‍

‍