The UK’s energy regulator Ofgem has launched a new consultation to deal with the influx of speculative data center applications within the UK’s interconnection queue.
The plan comes as demand connection applications have increased from 41GW to 125GW in less than a year, driven primarily by the data center market, which accounts for approximately 80GW of the new demand.
– Ofgem
The proposed reforms include a new Data Centre Commitment Fee, which large load data centers would pay when accepting a connection offer.
The fee would subsequently be refunded when the project is energized and forfeited if the project exits the queue early. According to Ofgem, the fee would be between £237,500 ($315,875) and £712,500 ($947,625) per megawatt, which it claims is equivalent to approximately 2.5 percent to 7.5 percent of average project costs.
