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Ofgem wants battery projects to pay to hold a grid spot

Published Sep 17, 2026
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Summary:
  • Britain's energy watchdog is proposing a queueing fee for battery storage projects seeking grid connections, starting at £3,000 per megawatt and possibly climbing to £25,000.
  • The £3,000 starting level is equal to $4,019, and the charge would be returned to projects that ultimately connect to the grid.
  • Ofgem says Britain has "three times more battery capacity in the connections queue than the system is expected to need by 2035," and the backlog is constraining the energy transition and growth.

The proposal and how it would work

Britain's energy regulator laid out the plan on Thursday to charge battery developers for keeping a place in the grid connections line. The charge starts at £3,000 per megawatt (Ofgem cites $4,019) and, should the line remain heavily oversubscribed, might climb as high as £25,000 per megawatt. Projects that make it to a live connection would get their payment back.

Why Ofgem says it is needed

Britain is shifting its power mix toward renewables and away from gas, and batteries are the shock absorbers that help smooth out wind and solar's ups and downs. Ofgem's move mirrors a step it floated earlier this year aimed at data centers stuck in the same queue.

Policy changes can ripple through investments, so steady planning protects your financial future. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.

Fee context and financial estimates

The proposed charge would be refunded when a project successfully connects. Ofgem's battery plan follows an earlier proposal for data centers that outlined fees of £237,500 to £712,500 per megawatt, which it said correspond to a share of a project's estimated capital expenditure between 2.5% and 7.5%. For batteries, the regulator says the maximum outlay would be around one quarter of capex for short duration systems and 7% for medium duration projects.

Keeping goals clear helps you preserve capital and pursue sensible growth over time. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.

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