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UK grid connection reform reshapes battery storage planning in 2026

Wed, 28 Oct 2026 08:50:03 +0800

In October 2026 the Planning Inspectorate granted consent to a Nottinghamshire solar farm with around 150MW of battery storage, while Ofgem consulted on letting developers build their own transmission connections. Modo Energy reports that connection reform has pushed 6.5GW of projects back by at least six months, and Drax notes a legacy queue of more than 700GW of projects waiting for grid connections.

Consent decisions under the Planning Act 2008

The Steeple Renewables Project was granted development consent by the Department for Energy Security and Net Zero on 9 October 2026. The application covers a solar farm in Nottinghamshire of approximately 450MW alongside approximately 150MW of battery energy storage. It was submitted to the Planning Inspectorate on 14 May 2025 and accepted for examination on 11 June 2025, with recommendations made to the Secretary of State on 10 July 2026.

The Planning Inspectorate said the application was the 115th energy application out of 183 examined to date and was again completed within the statutory timescale laid down in the Planning Act 2008. Local people, the local authority and other interested parties were able to take part in the six-month examination, and the Examining Authority's recommendation and the evidence considered are publicly available on the National Infrastructure Planning website.

Ofgem proposes self-build transmission connections

Ofgem opened a consultation on 7 October 2026 on allowing wind and solar farms, battery sites and large electricity users to build their own sole-use connections to the high-voltage transmission network and then hand those assets over to the network owner. Responses are due by 13 November. The self-build and transfer route is currently limited mainly to sites within 2km of the existing transmission system where the new assets could not be shared with anyone else.

Ofgem says industry has pointed to possible cost savings of around 20% and connections one to two years sooner where no wider reinforcement of the network is needed. Its illustrative scenarios put the median cost of the assets at £255m and five years to connect when the network owner builds them, against £191m and three years under the most optimistic self-build case. Modelled knock-on savings for other bill payers range from £12.5m to £1.3bn a year.

Draft rules would require self-built assets to meet the network owner's technical standards, use pre-approved engineering designs unless Ofgem signs off an alternative, and carry a five-year defect period. Where assets worth £40m or more could later serve other users, Ofgem would set the price the network owner pays. Ofgem plans to publish responses in January 2027 and reach a decision in the first quarter of 2027, using powers in the Planning and Infrastructure Act 2025.

Queue priority replaces first-come, first-served

Drax says the legacy first-come, first-served approach left more than 700GW of projects waiting for grid connections, including projects that are less likely to get built or less strategically vital. It describes the National Energy System Operator's move towards giving greater priority to projects that are viable and strategically important as a sensible development, arguing that genuine projects should be able to progress while network capacity is not effectively reserved for projects less likely to go ahead.

Drax also notes that a majority of the UK's new generation and storage is being developed in Scotland and the north of England, which together account for more than half of Britain's low-carbon generation capacity while representing less than a fifth of electricity demand. It says the UK has already paid out more than £1bn in wind curtailment costs this year, and that long connection times make decisions on new facilities much harder.

Reform pushes pipeline connection dates back

Modo Energy's October 2026 GB BESS pipeline update records 217 projects totalling 20.7GW. It says connection reform has pushed connection dates back, with 6.5GW of projects in its Q2 2026 pipeline now expecting a connection at least six months later. Under unchanged market conditions, Modo says a slower buildout means higher revenues for the batteries that do connect. It expects 19.5GW to connect by the end of 2029, with 1.3GW possibly connecting after that.

Modo reports that 8.7GW of the pipeline sits across 19 large sites of 300MW or more. The largest is Thorpe Marsh at 1,400MW in Yorkshire, followed by Carrington at 680MW in the north west, with four further sites of 500MW each. Modo says its figures are drawn from public registers including NESO's Transmission Entry Capacity register, DNO embedded capacity registers and the Renewable Energy Planning Database, which can be outdated or incomplete.

Key Takeaways

The Steeple Renewables Project, about 450MW of solar with about 150MW of BESS in Nottinghamshire, was granted development consent on 9 October 2026.
Ofgem is consulting until 13 November 2026 on allowing developers to build and transfer their own sole-use transmission connections, with a decision expected in the first quarter of 2027.
Drax says the legacy first-come, first-served approach left more than 700GW of projects waiting for grid connections.
Modo Energy reports that 6.5GW of projects in its Q2 2026 pipeline now expect a connection at least six months later.

Sources

LFP Duration and Degradation in Grid-Scale Battery Storage

Tue, 27 Oct 2026 08:53:08 +0800

Sources describe LFP as the dominant chemistry for grid-scale storage, with long cycle life but gradual capacity fade. Reported figures vary: one source cites 6,000–10,000 cycles to 80% state of health for ESS-grade LFP, while another gives 3,000–6,000 cycles. Real-world Zhangbei cells retained about 85% after nearly 14 years.

What LFP Duration Means in Practice

Battery lifespan is described through three clocks: cycle life, calendar life and service life. Cycle life counts full charge and discharge cycles before capacity falls to a defined threshold, usually 80% for electric vehicles and 70% for stationary storage. Calendar life covers ageing during light use, while service life is the useful years a battery delivers in a specific application, climate and duty cycle.

For LFP, one source reports average capacity loss of 2–4% per year under normal business use, leaving 70–80% after ten years. ESS-grade LFP cycle life is given as 6,000–10,000 cycles to 80% state of health in one source, while another table gives 3,000–6,000 cycles. The spread reflects different assumptions and test conditions rather than a single fixed figure.

Real-World Evidence from Zhangbei

The Zhangbei project began operating in 2011 with a 63 MWh lithium battery storage system and remained operational until June 2025. CATL analysed more than 50 original LFP prismatic cells after the installation was removed. None had needed replacement, and the cells retained approximately 85% of their original capacity after almost 14 years of continuous charging and discharging.

Engineers also examined the cells' internal condition, finding that the electrodes maintained a healthy structure and that the graphite showed no obvious degradation that would compromise functionality. CATL estimates the cells could serve another 10 years in less demanding storage systems, with around 1,000 additional charge and discharge cycles. The source cautions that this does not mean any battery will automatically last 24 years, because degradation depends on temperature, cycle depth, power and battery management.

Degradation Drivers and Thermal Effects

Degradation is driven by high charge rates, deep discharge cycles, extreme temperatures and a high average state of charge. Each factor accelerates chemical wear. One source states that every 10°C increase in temperature roughly doubles the degradation rate. Another describes heat as the biggest enemy of battery cells, and notes that a battery held consistently at 95–100% state of charge degrades faster than one kept at 50–80%.

A study of a 280 Ah prismatic LFP cell found that larger formats can create non-uniform internal temperature distribution during operation, which can accelerate localised ageing and, under extreme conditions, contribute to thermal runaway. The work measured surface temperatures, heat flux, internal resistance and entropic heat coefficients across state-of-charge values, ambient temperatures and C-rates, then ran 100 consecutive cycles at different ambient temperatures to quantify temperature-dependent capacity fade.

2026 Product Targets and Project Planning

Tesla's Megapack 3 was announced in September 2025 with a nameplate of about 5 MWh usable AC and 2.5 MW. Tesla's stated Megablock target is more than 10,000 cycles, but production was planned from late 2026 in Houston and the target was not yet achieved. The earlier Megapack 2XL is listed at 3,000–5,000 cycles on tesla.com. LFP accounted for around 90% of new grid-storage deployments in 2025, when 108 GW was added.

For project planning, degradation should be included year by year in the energy revenue calculation. One source describes a practical approach that applies expected annual capacity loss to the financial saving each year, then compares the result with a no-degradation scenario. It states that 3% annual degradation can lengthen payback by one to two years compared with a calculation that ignores degradation. Capacity warranties and cycle warranties should both be checked.

Key Takeaways

LFP is described as the default chemistry for stationary projects because it tolerates daily deep cycling, is thermally more forgiving and costs less per kilowatt-hour over its lifetime.
CATL found that more than 50 original LFP cells from the Zhangbei project retained about 85% of capacity after nearly 14 years, with no cells replaced.
Degradation is accelerated by deep discharge, high charge rates, high ambient temperature and a consistently high state of charge.
Tesla's Megapack 3, announced in September 2025, targets more than 10,000 cycles, but production was planned from late 2026 and the target was not yet achieved.

Sources

Revenue Stacking for UK Battery Storage in 2026

Tue, 27 Oct 2026 08:52:15 +0800

Sources published in 2026 describe battery storage income as a stack rather than a single revenue stream. Capacity payments form the predictable base, with demand response, energy arbitrage and grid services layered on top. In Britain, Ofgem's cap and floor regime is cited as a global reference model for building revenue certainty into long-duration projects, with final awards expected in autumn 2026.

Capacity payments form the base layer

Battery developers rarely build for capacity payments alone, because on their own those payments usually will not cover the cost of the equipment and a 25-year lease. A capacity payment pays a battery to be available, and grid operators run auctions that set a price per megawatt for committing to discharge when the grid is stressed. Capacity payments are described as the most predictable layer, which is why developers and their lenders build the rest of the stack on top.

US examples show how far these payments have moved. In PJM, capacity prices rose from $28.92 to $329.17 per MW-day across two auctions, and the last three auctions cleared at the price cap. In MISO, capacity prices climbed from about $500 per MW-year to as much as $90,000, according to Voltus president Matthew Plante.

Demand response, arbitrage and grid services

Demand response pays a battery to perform. When a utility or grid operator calls an event during a peak or an emergency, the battery discharges and earns a payment tied to what it delivers in those hours. A battery already committed for capacity can usually be enrolled in demand response as well, so it earns a standing payment for being ready plus an event payment when it is called.

Energy arbitrage earns the daily spread: the battery charges when power is cheap, sometimes at negative prices, and discharges when prices spike, with congested grid locations producing bigger spikes. Grid services such as second-by-second frequency regulation and voltage support are treated as upside, because these markets fill up quickly as more batteries come online. In Texas, battery revenue from these services has fallen about 90% from its 2023 peak.

The UK cap and floor as revenue certainty

The UK cap and floor is described as the global reference model for designing revenue certainty into long-duration storage, alongside Italy's MACSE, Japan's long-term decarbonisation auction and the New South Wales LTESA programme. Ofgem opened the first window in April 2025, offering a revenue floor to manage high capital costs and long build times, and a revenue cap that returns upside to consumers. In September 2025 it shortlisted 77 projects totalling 27 GW.

On 26 June 2026 Ofgem published a minded-to decision selecting 16 projects totalling 7,645 MW, with durations of 8 to 22 hours. The portfolio mixes lithium-ion, three pumped hydro schemes, compressed air and flow batteries. Battery owner-operator Field secured five projects in the first long-duration shortlist, totalling 1.6 GW and 26.8 GWh at an average duration of about 16.75 hours. Final awards are expected in autumn 2026.

Costs, payback and the duration question

Falling equipment costs underpin the investment case. Lithium-ion battery pack prices have fallen 93% since 2010 to $108 per kWh according to BNEF. Plante said the payback on a commercial battery has dropped from about 8 years to about 3.5 years with today's long-term contracts, describing the dynamic as the cost of installing a battery going down while the value of it goes up.

Duration is the next commercial question. Global long-duration installations exceeded 15 GWh in 2025, up 49% year on year, yet they represented only about 6% of all storage installed, with China accounting for roughly 93% of cumulative deployment. Lithium-ion projects of 8 to 18 hours are now winning government-backed long-duration contracts in Australia, the UK and Italy.

Key Takeaways

Capacity payments are the most predictable layer of a battery revenue stack, with demand response, energy arbitrage and grid services added on top.
Ofgem shortlisted 77 projects totalling 27 GW in September 2025, then published a minded-to decision selecting 16 projects totalling 7,645 MW with durations of 8 to 22 hours.
Lithium-ion battery pack prices have fallen 93% since 2010 to $108 per kWh, and payback on a commercial battery has dropped from about 8 years to about 3.5 years.
Global long-duration storage installations exceeded 15 GWh in 2025, up 49% year on year, but made up only about 6% of all storage installed.

Sources

UK Grid Connection Reform: Gate 2 Queue Changes For Battery Storage

Mon, 26 Oct 2026 08:51:14 +0800

Great Britain's grid connection queue is being reordered under the Ofgem-approved Gate 2 reforms, which replace first-come, first-served with tests of readiness and strategic alignment. NESO confirmed a reformed pipeline of 283 GW of generation and storage in December 2025, but issuing offers has slipped, with the first-phase deadline extended to 31 October 2026. A firm connection date matters because developers usually need one before they can raise finance.

Why the connection queue became a problem

Until the recent reform, connections to Great Britain's electricity network were allocated on a first-come, first-served basis. Applying was cheap, so speculative projects could join the queue and hold a place without being ready to build. According to the National Energy System Operator, the transmission queue grew tenfold in five years to more than 700 GW, roughly four times the capacity Great Britain is projected to need by 2030.

The consequence was that projects which were ready to build found themselves stuck behind others that might never go ahead. A project cannot export or import power until the network operator has capacity ready, and that often depends on new substations or lines being built first. The queue therefore became a barrier to delivery rather than a simple waiting list.

How the Gate 2 reform works

The reformed process, approved by Ofgem, replaces first-come, first-served with two tests. The readiness test checks whether a project has secured the rights to the land it needs. The strategic alignment test checks whether the project fits the technology and regional mix set out in the government's Clean Power 2030 plan. Projects that pass both receive a Gate 2 offer with a firm connection date.

In December 2025 NESO confirmed a reformed pipeline of 283 GW of generation and storage, plus 99 GW of transmission-connected demand. Projects that did not make the cut can reapply in later rounds. Ofgem has also introduced financial and readiness tests in its demand connections reforms, which respond to a queue that grew from 41 GW to 125 GW in under a year and extend across all demand sectors, including projects already holding a connection offer.

Timetable slippage and financing

Issuing the new offers has taken longer than planned. Ofgem has twice extended the deadline for the first phase of offers, most recently to 31 October 2026, and second-phase offers are due by 31 January 2027. A firm connection date matters because developers usually need one before they can raise finance, so slippage in the timetable directly affects when battery projects can be built.

Charging for queue positions has also been discussed. A September 2026 industry headline reported a proposal of up to GBP25,000 per MW as a fee to clear the battery storage grid queue, indicating that financial tests for holding a place form part of the wider debate. Ofgem's demand connections reforms already introduce financial and readiness tests, which are confirmed to extend across all demand sectors.

Wider grid reform and planning decisions

The connection queue is not the only area of reform. The government has created Great British Grid, a publicly owned entity operating within Great British Energy, to accelerate network infrastructure and to fast-track competitive tendering for transmission projects. Working with NESO and Ofgem, it says more than 300 GW of speculative capacity is being removed, and cites similar reforms in Ireland that reduced connection times by up to 11 months.

Investment needs are large. NESO's July 2026 update to its 2024 Beyond 2030 recommendations set out roughly GBP89bn of spending across the 2030s to upgrade the electricity grid, a 53% increase on the 2024 plan, with demand forecast to rise by more than 30% by the mid-2030s. On the consenting side, the Steeple Renewables Project in Nottinghamshire, comprising about 450MW of solar and about 150MW of battery storage, was granted development consent in October 2026.

Key Takeaways

Great Britain's transmission connection queue grew tenfold in five years to more than 700 GW, about four times the capacity projected to be needed by 2030.
The Ofgem-approved Gate 2 process replaces first-come, first-served with a readiness test and a strategic alignment test against the Clean Power 2030 plan.
In December 2025 NESO confirmed a reformed pipeline of 283 GW of generation and storage plus 99 GW of transmission-connected demand.
First-phase Gate 2 offers were extended to 31 October 2026, with second-phase offers due by 31 January 2027.

Sources

UK Planning Reform and Grid Connection Changes in 2026

Sun, 25 Oct 2026 08:52:07 +0800

Source material shows Britain lowering the approval process for major infrastructure projects from 24 July 2026, described as cutting the NSIP planning process by up to 12 months. Ofgem has published connections reform work aimed at faster, smarter grid connections. A proposed 500 MW solar and battery park in West Oxfordshire would be treated as a Nationally Significant Infrastructure Project.

Planning Reform for Major Infrastructure

The source material indicates that Britain has lowered the approval process for major infrastructure projects. A report cited in September 2026 coverage states that the change took effect on 24 July 2026, and describes it as cutting the NSIP planning process by up to 12 months. The same material notes that projects with a proposed capacity above 100 MW are classified as Nationally Significant Infrastructure Projects.

Alongside the planning change, Ofgem's news and insight pages list continuing regulatory activity across electricity transmission and electricity distribution, and with the National Energy System Operator. Publications during 2026 cover connections reform, electricity network supply chains and Bill Discount Scheme projects. The sources do not set out a single combined policy timetable, so no wider sequencing of reforms can be stated.

Faster, Smarter Grid Connections

Ofgem published a blog on 5 August 2026 titled Working together to deliver faster, smarter grid connections. It covers the regulator's connections reform work and a new Connections Investor Delivery Engagement Forum. The item is tagged to electricity transmission, electricity distribution and the National Energy System Operator. The source material does not give queue volumes, connection dates or specific project timelines, so no such figures are reported here.

Separately, an Ofgem news item dated 12 August 2026 welcomes the first Bill Discount Scheme projects, saying local households will get up to £250 off their energy bills, under the topic of electricity transmission. Ofgem also published a blog on 16 September 2026 about its work regulating electricity network supply chains. Taken together, these items show continuing regulatory attention on network delivery and connections.

What It Means for Solar and Storage Parks

A September 2026 report describes plans by UK renewable energy company Low Carbon to develop the 500 MW West Oxfordshire Energy Park, a solar PV project paired with a battery energy storage system. It is in the early stages of development, planned near Langford and Little Faringdon in West Oxfordshire. Low Carbon says the project could generate enough electricity for the equivalent of about 145,000 UK homes, and is conducting environmental and technical assessments and engaging with local councils and other stakeholders.

Because its proposed capacity is above 100 MW, the West Oxfordshire Energy Park will be classified as a Nationally Significant Infrastructure Project and will require a Development Consent Order. The source material links this classification to the wider planning change in effect since 24 July 2026, which it says has cut the approval process for major infrastructure projects.

Industry Focus on Execution and Delivery

In September 2026, Linxon, Hitachi Energy and FTC Solar signed a memorandum of understanding to pursue market acceleration for utility-scale solar and battery storage, initially across North America and beyond. The partners say the collaboration addresses infrastructure scaling, bringing together EPC expertise, grid and power technologies and solar infrastructure solutions for developers, utilities and investors.

The source states that the ability to connect new projects to the grid safely and quickly has become a top priority, citing factors such as AI data centre buildout and utility electrification straining the North American energy grid. Linxon's chief executive is quoted as saying the energy transition is increasingly constrained by execution capacity and supply chain availability.

Key Takeaways

Britain's change to major infrastructure approval took effect on 24 July 2026 and is described as cutting the NSIP planning process by up to 12 months.
Projects with a proposed capacity above 100 MW, such as the proposed 500 MW West Oxfordshire Energy Park, are classified as Nationally Significant Infrastructure Projects requiring a Development Consent Order.
Ofgem published connections reform material on 5 August 2026, including a new Connections Investor Delivery Engagement Forum covering transmission, distribution and the National Energy System Operator.
Industry partners describe grid connection speed, execution capacity and supply chain availability as defining constraints on utility-scale solar and battery deployment.

Sources

UK Battery Storage Buildout and Revenue Stack in 2026

Sat, 24 Oct 2026 08:52:11 +0800

Great Britain's battery storage fleet reached 8.5 GW and 14.4 GWh after a record third quarter in 2026, when nine batteries added 917 MW and 1,844 MWh. Modo Energy reports that its GB BESS revenue index rose 23 per cent between the second and third quarters while capacity grew 12 per cent, even as connections reform pushed parts of the pipeline back.

Record quarter takes the GB fleet to 8.5 GW

Nine batteries entered commercial operation in Great Britain during the third quarter of 2026, adding 917 MW and 1,844 MWh to the fleet and setting a new quarterly record. That exceeded the previous record of 674 MW set in the third quarter of 2025. Total installed capacity reached 8.5 GW and 14.4 GWh, according to Modo Energy's buildout analysis.

Projects are also getting larger. Since the first quarter of 2025, five of seven quarters have each added a site of at least 100 MW, including Thurrock and Kilmarnock South at 300 MW apiece. Coalburn 1 joined in the third quarter of 2026 at 500 MW, making it the largest battery in Great Britain.

Revenues hold up as capacity grows

Modo Energy reports that revenues stayed stable despite the accelerated buildout. Its ME BESS GB Index rose 23 per cent from the second quarter to the third quarter of 2026, while capacity increased by 12 per cent. The index is the source's own measure of revenue performance for batteries in the GB market.

Quarterly figures can be revised as more assets are captured. Modo Energy notes that some batteries appear in its asset database only after the quarter ends, so the most recent quarter may still increase. First quarter 2026 volumes were revised upward from 397 MW to 590 MW, while second quarter 2026 remained unchanged at 209 MW.

Connections reform reshapes the pipeline

Connection reform is changing the queue while large pipeline projects continue to reach commercial operation. Modo Energy's October 2026 pipeline update states that 6.5 GW of its second quarter 2026 pipeline now expects a connection date at least six months later than previously assumed, and that only 37 per cent of the pipeline holds a Gate 2 date.

The buildout record and the pipeline delays therefore sit alongside each other in the same market. Larger sites continue to complete, but the timing of later projects depends heavily on reformed connection arrangements and the visibility that Gate 2 dates provide to developers and investors.

Wider market signals for storage investment

Global figures published in 2026 point to continued expansion. One estimate puts the worldwide battery energy storage system market at USD 31.784 billion in 2026, up from USD 29.858 billion in 2025, a rise of about 6.45 per cent, with a compound annual growth rate of roughly 6.03 per cent between 2026 and 2032.

Another forecast values the global on-grid battery energy storage systems market at USD 33.12 billion in 2025, rising to USD 141.99 billion by 2035 at a 15.6 per cent compound annual growth rate. Europe is described as emphasising decarbonisation, flexibility and cross-border electricity coordination, with the United Kingdom addressing renewable integration, flexibility and evolving market and network rules.

Key Takeaways

Great Britain's battery fleet reached 8.5 GW and 14.4 GWh after nine batteries added 917 MW and 1,844 MWh in the third quarter of 2026.
The ME BESS GB Index rose 23 per cent quarter on quarter while capacity grew 12 per cent, indicating revenues held up during rapid buildout.
Coalburn 1, at 500 MW, became the largest battery in Great Britain.
Connection reform has pushed 6.5 GW of Modo Energy's second quarter 2026 pipeline to at least six months later, with only 37 per cent holding a Gate 2 date.

Sources

UK Battery Storage Planning Policy Reform and Grid Queue in 2026

Sat, 24 Oct 2026 08:51:37 +0800

Great Britain's transmission connection queue held 741 GW of contracted generation and storage across 2,225 projects as of 13 October 2026, yet only 87 GW was built and connected. Battery storage dominates the pipeline, and Ofgem is consulting on a new commitment fee intended to push speculative projects out of the queue sooner. Landowners should understand what this reform means for battery schemes on farmland.

The scale of the connection queue

According to the NESO TEC register, 741 GW of generation and storage is contracted to connect to the GB transmission grid across 2,225 projects. Only 87 GW is built and connected, leaving 653 GW still in the queue. Some 70.6 per cent of contracted capacity, or 523 GW, sits at the earliest Scoping stage, meaning NESO is not aware of a planning application for it. Battery storage accounts for 483.1 GW across 1,525 projects.

Solar in the queue totals 238.5 GW, of which 94.7 per cent is co-located with battery storage. Because co-located sites carry more than one technology, such projects are counted under both categories, so the technology figures overlap and do not sum to the total. The register is transmission-level and carries no per-site geography, so these are national totals rather than a site-level lookup.

Connections reform and the gate system

Under NESO's connections reform, known as First Ready, First Connected, the contracted stack is being cut to an ordered pipeline. That pipeline comprises 283 GW of Gate 2 offers out to 2035, with 132 GW connecting before 2030, while the remainder is held on a Gate 1 waiting list or removed. By June 2026 NESO had issued Gate 2 offers to 713 of the 1,223 projects in the 2030 pipeline, about 58 per cent and roughly 37 GW.

The register records a gate only once the reformed contract is countersigned. As of 13 October 2026, of the capacity not yet built, 16.4 GW across 107 projects held a countersigned Gate 2 contract, 299.6 GW across 819 projects held Gate 1, and 337.4 GW across 914 projects remained on pre-reform contracts. Holding a Gate 2 place now requires planning permission and land rights.

CMP470 and the proposed commitment fee

CMP470 is a Connection and Use of System Code modification proposal that would introduce an Oversubscribed Technologies Commitment Fee for certain oversubscribed technologies. It was raised on 20 March 2026 by Field Energy and has been granted urgent progression status by Ofgem. Around 90 GW of operational and Gate 2 battery storage capacity exists against an estimated Clean Power 2030 requirement of around 29 GW by 2035.

The mechanism would set a floor on the security projects are required to provide and on cancellation charges. The fee is triggered when total operational and Gate 2 capacity for a technology exceeds the relevant capacity target by more than 50 per cent, provided that target exceeds 5 GW. It starts at £3,000 per MW for the first six-monthly period, rising to £5,000 per MW and then in £5,000 increments to a cap of £25,000 per MW.

The floor increases if oversubscription does not fall by at least 25 per cent in each subsequent six-monthly period, and the fee is disapplied once oversubscription falls below 25 per cent. It would apply to all projects of the relevant oversubscribed technology with a Gate 2 offer up until energisation, including co-located projects, subject to an exemption where the oversubscribed technology connects after the other technology and has minimal network impact. Ofgem's minded-to position is to approve, but it has not made a final decision.

What the changes mean for land and developers

Battery storage is the only technology currently overshooting its target enough to trigger the fee, though the mechanism is built to apply to any oversubscribed technology class in future. Developers currently post a financial guarantee worth 10 per cent of their cancellation charge once planning consent is secured. Ofgem has described the queue as holding capacity that makes network infrastructure planning difficult and wants it to reflect real projects.

Tweaks under discussion include capping the fee at a project's existing security exposure, waiving it once construction starts, and tightening the exemption available to certain co-located projects. Industry stakeholders had until October to respond, and if approved the code modification would likely take effect around July next year. Because Gate 2 places depend on planning permission and land rights, secured land near available grid capacity is the scarce asset, and connection dates run into the 2030s.

Key Takeaways

741 GW of generation and storage is contracted to the GB transmission grid, but only 87 GW is built and connected.
70.6 per cent of contracted capacity remains at the earliest Scoping stage, with no planning application known to NESO.
Battery storage accounts for 483.1 GW of queued capacity, against an estimated Clean Power 2030 requirement of around 29 GW by 2035.
CMP470 would introduce a commitment fee starting at £3,000 per MW and rising to a cap of £25,000 per MW for oversubscribed technologies such as battery storage.

Sources

Ofgem Proposes Fee To Clear Battery Storage Grid Queue

Fri, 23 Oct 2026 08:51:42 +0800

Ofgem has proposed a financial commitment fee for battery energy storage projects holding places in Britain's grid connections queue. The regulator says speculative applications have left the queue around three times larger than projected needs. Under the proposal, developers would post security of £3,000 per MW, rising to as much as £25,000 per MW while oversubscription stays high.

Why the queue is oversubscribed

Around 90 GW of battery capacity is either operational or included in Britain's reformed grid connections queue, against an estimated 29 GW of electricity storage capacity that could be required by 2035. Ofgem said the queue remains roughly three times larger than projected requirements for the coming decade. That backlog makes it difficult for network operators to determine which projects are likely to proceed, and speculative applications can reserve limited grid capacity, potentially delaying projects that are ready to build and increasing uncertainty around future network investment.

A Korean-language report on the same proposal states that roughly 7 GW of battery capacity is operational, with a further 83 GW held as priority projects in NESO's reformed queue. It notes that NESO excluded around 40 per cent of transmission-connected battery project capacity during earlier connections reform for failing to meet criteria, yet oversubscription has continued.

How the commitment fee would work

The proposed Oversubscribed Technologies Commitment Fee would require battery storage projects to demonstrate financial commitment in order to retain their place in the connections queue. Developers would provide backing through mechanisms such as cash collateral, letters of credit or guarantees. The fee would initially be set at £3,000 per MW and could increase to as much as £25,000 per MW when the level of oversubscription remains high. A 100 MW battery project at the maximum rate would require £2.5 million, although security already provided above the new level would not need to be duplicated.

The mechanism would be activated when the capacity requested by a particular technology exceeds its targeted demand by more than 50 per cent, and would remain applicable until oversupply falls below 25 per cent. NESO would be responsible for monitoring oversubscription and determining when the fee should be introduced or adjusted. The fee is not a sunk charge: it is returned once a project connects and operates. Where money is collected from projects leaving the queue as a cancellation charge, Ofgem says it would be returned to consumers through reductions in network charges.

Wider reform and expected timing

The fee forms part of wider reforms to Britain's grid connections system, which are moving away from the traditional first-come, first-served approach toward prioritising projects that are ready to proceed and aligned with system requirements. Ofgem opened a consultation on the changes, with a final decision expected later this year. The proposal, known as CMP470, was raised by battery developer Field Energy in March 2026, and six alternative options covering different security levels, durations and co-located projects are also under review.

Separately, NESO has asked Ofgem for a one-month extension to issue the remaining Gate 2 Phase 1 connection offers, a delay that will push some grid connection dates into 2027 and beyond. The Gate system, with Gate 1 for early feasibility and Gate 2 for full connection offers, was intended to clear a backlog of speculative solar farm and battery schemes that held positions for years without building.

Planning approval and longer-duration storage

Planning approval for grid-scale battery storage increasingly runs through National Fire Chiefs Council guidance, which is not a statutory planning requirement but is referenced in Planning Practice Guidance and functions as the working standard applied by fire and rescue services and planning authorities. The updated guidance, approved for publication in December 2025, allows minimum spacing between units to fall to 0.914 m where a unit has passed UL 9540A testing, and requires developers to identify all sensitive receptors within a 1 km radius of the site.

Longer-duration storage is also being supported through public research funding. UKRI's clean energy mission is backing ultra-long duration energy storage technologies with a duration over 100 hours, including up to £13 million for electrochemical work and up to £15 million for underground hydrogen storage research, with aims including demonstrators over 100 MWh by 2030 and deployment on the grid at GWh scale by 2035.

Key Takeaways

Ofgem has proposed a financial commitment fee for battery storage projects holding places in Britain's grid connections queue.
Around 90 GW of battery capacity is operational or queued in Britain, against roughly 29 GW estimated as required by 2035.
The proposed fee would start at £3,000 per MW and could reach £25,000 per MW while oversubscription remains high.
NESO has asked Ofgem for a one-month extension to issue the remaining Gate 2 Phase 1 connection offers, pushing some dates into 2027.

Sources

Ofgem Considers BESS Commitment Fee to Cut Grid Connection Queue

Thu, 22 Oct 2026 08:52:57 +0800

Ofgem is consulting on a proposed Oversubscribed Technologies Commitment Fee that would require battery storage projects to post financial security to hold their place in Great Britain's grid connection queue. The measure, raised as CUSC modification CMP470 by developer Field Energy, targets technologies whose queued capacity far exceeds clean power targets. Ofgem says it is minded to approve the proposal, though no final decision has been made.

What CMP470 Would Introduce

CMP470 is a Connection and Use of System Code modification proposal that would introduce an Oversubscribed Technologies Commitment Fee for certain oversubscribed technology generation projects connecting to the Great Britain transmission or distribution system. It is intended to set a floor on the amount of security such projects must provide to NESO in order to obtain a connection, and also to set a floor for the cancellation charge.

The modification was raised on 20 March 2026 by Field Energy and has been granted urgent progression status by Ofgem. The fee would be applied through the existing Cancellation Charge and Cancellation Charge Secured Amount framework, with amounts falling below the floor increased to the applicable minimum through the biannual cancellation charge process. As is already the case, securities posted are returned where a project proceeds to connection.

Why BESS Oversupply Prompted the Change

Following the TMO4+ connections reform package, NESO protections mean that for certain technologies the number of projects qualifying for Gate 2 offers significantly exceeds Clean Power 2030 capacity targets, with battery energy storage systems particularly affected. The sources report around 90GW of operational and Gate 2 BESS capacity against an estimated CP30 requirement of around 29GW by 2035.

NESO cleared 40% of grid-level battery capacity from the queue, yet 83GW remains prioritised alongside 7GW of operating capacity. If every project with a connection offer were built, capacity would be 14.8GW above NESO's 24GW estimate for the 2030 clean power target and 61.7GW above the 29GW projected as required by 2035.

The proposer argues that this excess undermines connections reform, because NESO and transmission owners must plan network infrastructure for a significant number of projects that will never be built, delaying connections for all technologies. Ofgem's provisional assessment is that the current level of oversubscription represents a material defect and that intervention is justified.

How the Escalating Fee Would Work

The fee would be triggered when total operational and Gate 2 capacity for a technology exceeds the relevant capacity target by more than 50%, provided that the capacity target exceeds 5GW. The initial floor would be set at £3,000 per MW upon first activation, applying for the first six-monthly period.

If oversubscription does not reduce by at least 25% in each subsequent six-monthly period, the floor would rise initially to £5,000 per MW and thereafter in £5,000 per MW increments until it reaches a cap of £25,000 per MW. The mechanism would be disapplied once oversubscription falls below 25%.

The fee would apply to all projects of the relevant oversubscribed technology holding a Gate 2 offer, up until energisation, including co-located projects. There would be an exemption for co-located projects where the oversubscribed technology connects after the other technology, does not increase Transmission Entry Capacity and has minimal network impact.

Consultation, Timing and Possible Changes

Ofgem is inviting industry stakeholders to comment on whether introducing a new fee structure is justified, how impact assessment should work and any implementation concerns, with responses due by 1 October. Possible modifications 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.

Ofgem's minded-to position is to approve the proposed solution set out above, but it has not made its final decision, and the CMP470 workgroup also developed several alternative proposals. The measure would be introduced via a modification of Great Britain's connection and use of system code and would likely come into force in July 2027.

Key Takeaways

Ofgem is consulting on an Oversubscribed Technologies Commitment Fee proposed as CUSC modification CMP470 by Field Energy in March 2026.
The fee would start at £3,000 per MW and could rise in £5,000 per MW steps to a cap of £25,000 per MW while oversubscription persists.
Around 90GW of operational and Gate 2 BESS capacity is queued against an estimated CP30 requirement of around 29GW by 2035.
Ofgem is minded to approve the proposal, with implementation likely in July 2027, but no final decision has been made.

Sources

Grid-Scale LFP Duration and Degradation: What the Sources Show

Wed, 21 Oct 2026 08:51:12 +0800

Lithium iron phosphate (LFP) dominates grid-scale battery storage, and its practical duration depends on two clocks: cycle life and calendar life. Sources describe LFP cells rated for thousands of cycles and ten to fifteen years, a capacity warranty curve retaining roughly 65 to 70 per cent by year 20, and CATL's analysis of Zhangbei cells that kept about 85 per cent state of health after almost 14 years.

Cycle Life and Calendar Life: Two Clocks

Battery ageing begins at manufacture rather than first charge, which is why sources distinguish cycle life from calendar life. Cycle life counts the charge-discharge cycles a cell completes before capacity falls to 80 per cent of its original rated value, the usual end-of-life threshold. Calendar life describes how many years the chemistry stays serviceable regardless of cycling. Whichever limit is reached first ends practical service, so a pack quoted only in cycles can look attractive on paper yet fail early if it sits at a high state of charge.

Published figures differ by source and application. One industry source puts most deep-cycle LFP cells at 3,000 to 5,000 cycles at 80 per cent depth of discharge, equal to eight to thirteen years at one full equivalent cycle per day, with a calendar life rating of ten to fifteen years. Another gives 4,000 to 6,000-plus cycles and ten to fifteen years, noting that high-quality packs with robust battery management systems can reach 6,000 to 10,000 cycles under optimal conditions.

What the Zhangbei Cells Showed After 14 Years

The Zhangbei energy storage project in China began operating in 2011 with a capacity of approximately 63 MWh and cycled continuously until its operational phase ended in June 2025. CATL recovered more than 50 prismatic lithium iron phosphate cells from the installation for laboratory analysis, including performance testing, internal inspection, cell disassembly and microscopic examination of key components. The company reports that no cells needed replacing during the project's operating life.

The analysed cells retained roughly 85 per cent of their original state of health. Internal examinations found anode and cathode structures in good condition, with lithium insertion and extraction still proceeding correctly, and no especially concerning signs of ageing in the graphite. CATL considers that some of these cells could continue working for approximately another decade in less demanding storage applications, potentially exceeding twenty years of use. An earlier inspection about nine years into operation estimated around 6,000 further cycles.

Warranty Curves and Operating Envelopes

For grid-scale projects, degradation is contracted rather than assumed. A capacity warranty guarantees a minimum fraction of rated energy capacity over a stated period, typically fifteen to twenty years, provided the asset stays inside agreed boundary conditions on cycle count, depth of discharge, C-rate, temperature and maintenance. For stationary LFP systems, a representative curve guarantees on the order of 65 to 70 per cent retained capacity by roughly year 20 under one full cycle per day.

Two delivery structures dominate. Under an energy-retention warranty the buyer oversizes at day one so contracted energy is still met at end of life; under a maintenance or augmentation warranty the supplier adds modules or racks over time to hold constant guaranteed energy. The warranty also shapes operating strategy: an aggressive two-cycle-per-day arbitrage case consumes the annual throughput allowance roughly twice as fast as a one-cycle capacity contract.

Temperature, Duration and Chemistry Trade-offs

Heat is described as the most aggressive enemy of lithium chemistry. At 45°C, LFP cells can lose capacity nearly twice as fast as at 25°C, and sources recommend keeping cells inside a working band of 15°C to 35°C. Depth of discharge, charging habits, charge and discharge rate, and cell and battery management system quality also affect how long a pack lasts.

Duration matters too. One source notes that LFP handles one to four hour storage duration very well, but as discharge duration stretches out, its economics stop scaling as favourably, because every extra hour of capacity means proportionally more expensive cells. Vanadium flow batteries are presented as an alternative in that niche, with claimed lifespans of 20,000-plus cycles, though the same source concludes LFP remains the rational starting point for most BESS projects.

Key Takeaways

CATL analysed more than 50 prismatic LFP cells from the Zhangbei storage project after almost 14 years of continuous operation and found they retained roughly 85 per cent of their original state of health.
Sources put LFP cycle life at roughly 3,000 to 5,000 cycles at 80 per cent depth of discharge, translating to about eight to fifteen years at one cycle per day, with calendar life ratings of ten to fifteen years.
A representative grid-scale capacity warranty guarantees on the order of 65 to 70 per cent retained capacity by roughly year 20 under one full cycle per day, inside a defined operating envelope.
LFP cells can lose capacity nearly twice as fast at 45°C as at 25°C, and sources recommend a working temperature band of 15°C to 35°C.

Sources