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UK Regulator Targets Data-Center Land-Grab On The Power Grid
['Tyler Durden']
Zero Hedge
The proposal includes a new Data Centre Commitment Fee, which would be paid by large data center developments when accepting a connection offer, Ofgem said in a statement.
The fee would be refunded when the project reaches grid connection status and forfeited if the project exits the grid queue early.
“The proposals are aimed at tackling speculative projects from securing scarce network capacity without any firm intention to connect, ensuring the queue enables investment ready, viable projects,” Ofgem said.
“Ofgem is concerned that a significant number of projects in the queue may not ultimately proceed, potentially delaying viable developments and creating misleading signals about future network investment needs,” the regulator said.
“Where speculative projects take up space in the queue, they can delay other schemes and create uncertainty about future network needs,” the official added.