UK-based Gresham House Energy Storage Fund (GRID) has announced long-term floor-pricing agreements with EDF.
The 10-year floor agreements with EDF will cover 100MW of currently operational battery energy storage projects and a further 637MW of exclusive pipeline projects.
The contracts are at the same floor level in £/MW terms as the deals announced with Statkraft Markets and Markel Bermuda at the start of July.
Once all the floor agreements are in force for the 100MW operational projects and the two-year tolling agreements with Octopus Energy over 568MW of capacity have expired, 889MW (83%) of GRID’s 1072MW operational portfolio will benefit from minimum annual contracted floor revenues of £40m.
The operational portfolio’s Capacity Market contracted revenues are not included in the figure above and are expected to represent an additional £11m of contracted revenues in 2026.
GRID chair John Leggate said: “The floor agreements announced today with EDF, the UK’s largest battery optimiser, mark the completion of another key milestone.
“Being able to demonstrate to lenders that GRID has de-risked revenues is key to unlocking more favourable, longer-term financing terms with less onerous covenants.
“We look forward to concluding our refinancing shortly to unlock the next phase of our three-year plan and implementing a revised dividend policy.”
Fund manager of GRID Ben Guest said: “The floor agreements signed over the last month, including those announced today, significantly improve the risk profile of the company and fundamentally reposition GRID as a business with significant minimum contracted revenue while retaining merchant upside.
“As well as having secured additional floor agreements on the currently operational portfolio, we have ensured that the next 637MW of exclusive pipeline projects also benefit from similar terms for their floor agreements which will enable GRID to secure improved project financing terms on these new construction projects, once acquired.
“We are pleased to be able to demonstrate further execution against our publicly stated targets and strategy.”