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Market update

Ofgem moves to clear speculative battery projects from the grid queue

There is around three times more battery storage in the grid connections queue than the system needs. Ofgem has proposed a fee to weed out projects that are unlikely to be built, which could matter to any business waiting on a new or bigger connection.

PUBLISHED 3 OCTOBER 2026 BY TOM WAUGH, FOUNDER & MD 4 MIN READ

What Ofgem proposed

On 17 September 2026 Ofgem opened a consultation on a new financial commitment for battery storage projects in the grid connections queue. It is called the Oversubscribed Technologies Commitment Fee, and it would require battery developers to put money down to hold their place, from £3,000 per MW up to £25,000 per MW depending on how oversubscribed their area is.

Why the queue is a problem

Projects that never get built still take up space in the plans. That makes it harder for networks to plan and invest, and slows down connections for projects that are ready to go. Ofgem's point is simple: the queue should reflect real projects, not placeholders.

What it means for businesses

What happens next

The consultation ran for two weeks from 17 September, and Ofgem expects to make a final decision later in 2026. We will cover the outcome here when it is published.

For more on how network charges are set, see our guide to TNUoS and HV sites.

Common questions

What is the Oversubscribed Technologies Commitment Fee?

A proposed fee for battery storage projects in the grid connections queue, from £3,000 to £25,000 per MW depending on how oversubscribed the area is, designed to remove projects unlikely to be built.

Will this speed up my business connection?

Possibly over time. Clearing speculative projects should free up capacity and help networks plan, but the effect will build gradually rather than immediately.

Sources

Contains public sector information licensed under the Open Government Licence v3.0.

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