From ESS News

UK energy regulator Ofgem is consulting on plants to introduce a new financial commitment for BESS in Great Britain’s grid connection queue, in a move it has described as a “major intervention” to cut an oversupply of projects.

The proposed fee would apply to “oversubscribed technologies” and would require BESS operators to pay a security to keep their place in the queue, at a value linked to their proposed capacity.

The decision follows a connections reform process which saw grid operator NESO clear 40% of grid-level battery capacity for the queue, however 83 GW is still prioritized on the new queue in addition to the 7 GW of operating capacity.

While the industry expects attrition on that figure, if all projects with a connection offer were built then capacity would be 14.8 GW above NESO’s 24 GW estimate to meet the UK government’s 2030 clean power target, and 61.7 GW above the projected 29 GW required by 2035.

Ofgem now says it is minded to approve an Oversubscribed Technologies Commitment Fee (OTCF), which would require projects to demonstrate a minimum level of financial commitment – starting at GBP 3,000 per MW and rising to a maximum of GBP 25,000 per MW if the queue remains oversubscribed.

The measure would be introduced via a modification of Great Britain’s connection and use of system code (CUSC). First proposed by BESS developer Field Energy in March 2026, the code modification dubbed CMP470 would likely come into force in July 2027.

Ofgem’s is now inviting industry stakeholders to share views on the proposal, giving BESS developers and other parties the opportunity to comment on whether introducing a new fee structure is justified, how impact assessment should work, and any implementation concerns.

Possible modifications to current proposals include capping the commitment fee at a project’s maximum existing security exposure, removing the fee once a project begins construction, and removing an exemption for certain co-located projects. Industry stakeholders have until Oct. 1 to respond.

The full consultation document is available from Ofgem.