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UK energy supplier EDF has entered into long-term floor pricing agreements with Gresham House Energy Storage Fund plc (GRID), the UK’s largest owner of operational battery energy storage systems (BESS).
GRID has selected EDF to optimise several battery assets, equalling 737MW, and entered into these long-term agreements to provide enhanced revenue stability.
EDF will optimise all sites using its proprietary Powershift platform, which delivers value across the Wholesale Market, Balancing Mechanism, and Ancillary Services, while providing the National Electricity System Operator (NESO) with vital, fast-acting reserve capacity.
The agreements provide GRID with a predictable income base while allowing the company to benefit from potential rises in wholesale energy market prices.
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Commenting in a release was Ben Guest, fund manager at Gresham House Energy Storage Fund: “We are delighted to announce the signing of these Floor Agreements with EDF, the UK’s largest battery optimiser, and we look forward to working closely with EDF over the life of these contracts.
“The floor agreements mark the completion of another key milestone for GRID, significantly improving the risk profile of the Company and fundamentally reposition GRID as a business with significant minimum contracted revenue while retaining merchant upside.”
Stuart Fenner, Wholesale Market Services, commercial director at EDF, said: “We’re pleased to partner with Gresham House in a new long-term agreement that supports the continued rollout of battery storage across the UK.
“The deal reflects the ambition, and expertise both parties bring to the energy transition. At EDF, we are committed to being a reliable partner and look forward to delivering value through our trading expertise and Balance Mechanism capabilities.”
The landmark agreement covers 737MW of BESS projects, 100MW of which are currently operational and 637MW in development
