#57 Project Commitment Fee - Guest Series with Alex Ikonic, Grid Engineer, Ørsted
Update: 2025-06-10
Description
This episode of the Connectology® podcast dives into the evolving Project Commitment Fee (PCF) with special guest Alex Ikonic, Grid Engineer at Ørsted, who brings insights from the CMP448 CUSC work group. The PCF—originally proposed by NESO as a £20,000/MW bond—has been revised to a phased fee starting at £2,500/MW, rising to £10,000/MW, and triggered only if 6 GW of post-Gate 2 generation projects are terminated.
The discussion highlights:
- Who the PCF applies too
- How termination or tech downsizing would result in partial or full fee loss
- How self-termination discounts are being explored
- Key risks, including rushed, low-quality planning applications, pressure on offshore timelines, and wider concerns around investor confidence and Clean Power 2030 delivery.
Listen now to hear why Ørsted and Roadnight Taylor are voting against the current proposal—for now—and why they believe we should give Connections Reform a chance before bringing in new penalties.
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