Gresham House Energy Storage Fund (LSE: GRID) has signed 10-year floor-pricing agreements with EDF for 100MW of operational battery storage capacity and an additional 637MW of pipeline projects, the UK-based investment company said on Tuesday.
The agreements, which set a guaranteed minimum revenue level, match the £/MW floor pricing previously announced in deals with Statkraft Markets and Markel Bermuda earlier this month.
“The floor agreements announced today with EDF, the UK’s largest battery optimiser, mark the completion of another key milestone,” said John Leggate, chair of GRID. “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.”
When fully in effect and following the expiry of existing tolling agreements with Octopus Energy over 568MW of capacity, 889MW—or 83%—of GRID’s 1,072MW operational portfolio will be covered by contracted floor revenues of at least £40 million per year. The figure excludes Capacity Market income, which is expected to add an additional £11 million in contracted revenues in 2026.
Fund manager Ben Guest noted that the recent floor agreements improve GRID’s financial stability. “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,” he said.
GRID stated that the floor pricing terms will also apply to the 637MW of upcoming battery storage projects under exclusive development, enabling the fund to pursue improved financing arrangements as those assets move into construction.
The company is currently progressing toward a refinancing aimed at supporting its three-year strategic plan, which includes a revised dividend policy.
