In Great Britain, the wholesale price of electricity is set by the most expensive generator needed at the time, which is often gas. A private energy market works differently: your sites are matched directly with UK renewable generators, half hour by half hour, through a licensed supplier over the public grid. You know where your electricity came from, and the price for the matched energy is set by the licensed supplier that connects generator and user.
The government estimates gas now sets the price around 60% of the time, down from around 90% in the early 2020s, so the energy part of a business bill still tends to follow gas prices. Top up electricity from the grid, network charges and government levies still apply in a private market, as on any business supply.
What is peer-to-peer energy?
Peer-to-peer (P2P) energy, sometimes called P2P energy trading, means your business buys electricity directly from named renewable generators instead of from the general market. Their output is matched against your consumption every half hour through a licensed supplier, over the public grid. Your meters, wiring and supply stay exactly as they are. Direct renewable supply and private energy markets are the business versions of the same idea, and we use the terms interchangeably below.
What a private energy market is
A private market is a matched group of generators and consumers. It might be a single business buying from a nearby wind or hydro generator, a manufacturer with solar on one site sharing its output with its other sites, or a group of businesses and generators in the same region. Every half hour, what the generators produced is matched with what the consumers used. Anything not covered is topped up from the grid, so your supply continues as normal.
Share energy between your own sites
If you generate at one site and consume at others, a private market lets the surplus from the generating site be matched against your other sites' consumption, wherever they are in Great Britain. Instead of exporting at a low price and buying back at a high one, your organisation keeps more of the value of its own generation. Network charges and levies still apply at the sites using the electricity, because it travels over the public grid.
How contracts are structured
Providers structure contracts in different ways: a fixed price for the full term, with matched volumes traced to named generators and any shortfall supplied from the grid; a partly fixed price; or a variable arrangement matched first with local generators and topped up from the grid. A variable arrangement can save more when local generation is plentiful, but carries more price risk.
What to check before signing
How the matching is measured; how top up electricity is priced; the contract length and exit terms; how any reliefs you qualify for will be applied, such as the Energy Intensive Industries (EII) exemption or, from April 2027, the British Industrial Competitiveness Scheme (BICS); whether Renewable Energy Guarantees of Origin (REGOs) are transferred to you; and, for partly fixed and variable options, how much of your volume is exposed to market movement.
For generators
If you generate, a private market is a route to market for your export. Some arrangements fix the price on a large share of your output for revenue certainty, with the balance sold into the private market. Smaller generators can be added to a market as top up. Matching reports show how your output was used and what it earned.
Clearer reporting for customers and stakeholders
Because matching is done half hourly, you receive reports showing the volume matched by generator and by technology. For Scope 2 reporting under the market based method, a renewable claim still needs to be backed by REGOs for the matched volume, so check that these are transferred to you or retired on your behalf. The Greenhouse Gas Protocol has consulted on moving to hourly matching.
How Energy Planner helps
- Suitability. We look at your consumption pattern and your sites to see whether a private market suits you, and which contract structure fits.
- Comparison. We compare the private market option against conventional supply, so you see the real difference in cost and risk.
- Contracts. We check the terms, the matching method and how reliefs will be applied, then manage the arrangement and the bills.
- Generators. We help generators find business buyers and agree a price for their output.
Common questions
Is direct renewable supply the same as peer-to-peer energy?
Yes. Peer-to-peer (P2P) energy is the common name for it. Your consumption is matched with named UK generators every half hour through a licensed supplier, rather than bought from the general market.
Do we need to be near the generator?
No. Matching happens over the public grid, so your sites and the generators can be anywhere in Great Britain, although local matching is available where it suits.
What happens when the generators are not producing?
Your supply is topped up from the grid automatically. Your supply continues as normal; you pay the top up price for that portion.
Is this the same as a green tariff?
No. Many green tariffs are standard grid supply matched with REGOs, certificates issued for each megawatt hour of renewable generation that can be bought separately from the electricity and are usually counted over a year. A private market matches your consumption with named generators half hour by half hour, and reports it.
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Interested in a private energy market?
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Book a callThis page is general information as at October 2026, not advice on your specific circumstances. Matching arrangements, contract terms and pricing depend on your sites, your consumption and what is available at the time, so it is worth confirming the detail before making a decision.