sustain&play

UK regulator proposes new fees to clear a massive backlog of battery storage grid connections

Ofgem wants battery storage developers to pay new security fees to hold their place in a grid connection queue that is running many times larger than the UK actually needs.

By Emre Başaran1 min read
Gemini
Gemini

According to a piece published Friday by Matthew Lynas on PV Magazine, Britain's energy regulator Ofgem has proposed a new fee that would require battery energy storage developers to pay to hold their spot in the country's grid connection queue.

The proposed Oversubscribed Technologies Commitment Fee would start at £3,000 per megawatt and could rise to as much as £25,000 per megawatt if oversupply persists, according to the piece. The measure targets a queue that currently holds 83 gigawatts of battery storage capacity awaiting connection, plus another 7 gigawatts already operating, far beyond what the grid operator NESO says is needed: roughly 14.8 gigawatts more than its 24-gigawatt estimate for 2030, and 61.7 gigawatts more than its projected 29-gigawatt requirement for 2035. A previous round of connection reform already cleared out 40% of grid-level battery capacity from the queue, but the backlog has persisted.

The fee proposal, originally put forward by developer Field Energy in March under industry code modification CMP470, would take effect in July 2027 if approved. Ofgem is weighing possible changes, including capping the fee at a project's existing maximum security exposure and dropping the charge once construction begins, and is accepting industry feedback on the plan through October 1.

Matthew Lynas, PV Magazine: https://www.pv-magazine.com/2026/09/19/uk-regulator-plans-bess-fees-to-cut-grid-connection-queue/

This article was produced with the assistance of AI tools and reviewed by an editor before publication.

Related