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UK regulator looks to cut down BESS interconnection backlog with extra financial commitment

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UK regulator looks to cut down BESS interconnection backlog with extra financial commitment

UK energy industry regulator Ofgem said it is minded to approve the introduction of a financial commitment for BESS in an attempt to reduce the oversupply of the projects awaiting a grid connection.

There is about 90GW of battery energy storage (BESS) capacity either operational or in the reformed connections queue, almost three times the 29GW that the government is targeting as part of its Clean Power 2030 target.

The Oversubscribed Technologies Commitment Fee (OTCF) would require projects to demonstrate a minimum level of financial commitment starting at £3,000 per MW and rising to a maximum £25,000 per MW if the queue remains significantly oversubscribed.

Ofgem said that while battery storage has a “vital role” to play in a clean energy system, the scale of the queue “makes it difficult to know which projects are genuinely likely to be built”. This was the issue with the broader grid connection queue before it was reformed to follow a ‘first ready, first connected’ process.



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