EDF Energy, the UK-based utility company, has signed long-term floor pricing agreements with Gresham House Energy Storage Fund (GRID), the UK’s largest owner of operational battery energy storage systems (BESS) covering 737MW of BESS projects.
The agreement covers two currently operational BESS, covering 100MW in capacity in total, with BESS projects totalling 637MW in development.
GRID said it selected the energy firm to optimise several battery assets as well as the long-term agreements so it can have a predictable income base whilst being able to benefit from potential rises in wholesale energy market prices.
EDF said it is to optimise the BESS projects using its proprietary Powershift platform, which can provide the National Electricity System Operator (NESO) with fast-acting reserve capacity.
The agreement is said to be driven by the long-term focus on the scaling of battery storage in the UK, particularly using BESS to optimise the electrical grid.
Ben Guest, fund manager, GRID, said, “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, 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.”
Image: An example of a BESS. Credit: Rawpixel.
