UK regulator proposes battery storage fee to speed renewable grid connections

Ofgem's proposed fee aims to clear battery storage projects from grid connection delays, potentially accelerating UK's clean energy capacity by 14.8 GW beyond 2030 targets.

Ofgem has proposed an Oversubscribed Technologies Commitment Fee (OTCF) for battery energy storage systems (BESS) in Great Britain's grid connection queue. The fee requires operators to pay a security deposit starting at GBP 3,000 per MW and capping at GBP 25,000 per MW. Implementation would use Great Britain's connection and use of system code (CUSC) modification CMP470, with the proposal first introduced in March 2026 and expected to take effect in July 2027.

The grid connection queue currently prioritizes 83 GW of BESS capacity plus 7 GW of operating capacity. If all projects in this queue were built, BESS capacity would exceed the UK's NESO 24 GW clean power target for 2030 by 14.8 GW and the 2035 requirement by 61.7 GW. Ofgem is consulting industry stakeholders with responses due by October 1, 2026.

This measure addresses grid connection delays for renewable energy storage, directly advancing energy access for SUSTENANCE and THE COMMONS. By accelerating BESS deployment, it could significantly boost the UK's capacity to integrate renewable power while reducing grid instability. The fee targets the largest pending battery projects, potentially clearing 40% of grid-level battery capacity that NESO recently cleared through prior grid reform.

What to watch: Ofgem's consultation outcome by October 1, 2026. The proposal remains under consultation and not yet implemented; all figures reflect the state of the queue as reported in the source text.

Source: pv magazine