Ofgem proposes new fee to clear battery grid connection queue

Ofgem has launched a public consultation to approve a new commitment fee to help clear the battery connections queue and free up capacity for viable projects.

The move is intended to cut the oversupply of projects competing for space on the grid, with more than 1,200 energy projects currently in Great Britain’s reformed grid connection pipeline.

Battery capacity of 90GW is currently either connected or in the queue – roughly three times the projected requirement of around 29GW by 2035. Ofgem says that new measures would encourage projects unlikely to connect to leave the queue sooner, giving networks a clearer signal on what infrastructure Britain needs.

Director for Energy System Design and Development, Eleanor Warburton, said: “Britain has three times more battery capacity in the connections queue than the system is expected to need by 2035, which makes it harder to identify which projects are genuinely going to be built and what network infrastructure is actually required.

“The queue must reflect real projects, not placeholders. We are proposing approving the introduction of a new financial commitment to require battery projects to demonstrate they are serious about progressing, while encouraging those that are unlikely to connect to make that decision earlier.”

Ofgem is proposing the fee to weed out projects seeking grid connections to ensure capacity is reserved for developments that are serious about progressing. The fee would start at £3,000 per MW and could rise to £25,000 per MW if the queue remains heavily oversubscribed, forming part of wider efforts to tackle speculative projects.

The consultation will run for two weeks and expects to publish its final decision later this year.