UK: Gresham House signs 789MW floor deals, Octopus toll to expire

LinkedIn
Twitter
Reddit
Facebook
Email

UK BESS owner Gresham House Energy Storage Fund (GRID) has entered into long-term floor agreements with Statkraft and Markel Bermuda, which will partially replace its toll with Octopus once that expires next year.

The deals cover 412MW of battery energy storage system (BESS) capacity with Statkraft Markets GmbH starting in 2025 and 2027, and 377MW of capacity with Markel Bermuda, part of insurance firm Markel Group, which kicks in once a debt refinancing is completed ‘shortly’, GRID said.

That totals 789MW, around 74% of GRID’s 1072MW BESS portfolio, some of which still needs to enter commercial operation during the period. The firm is one of the largest owners of BESS in the UK.

Floor agreements will replace Octopus toll

The agreements will fully kick in once GRID’s two-year 568MW tolling deal with Octopus Energy, which started in June 2024, ends, though will partially kick in before that.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Once the toll expires, the floors will provide GRID with minimum annual contracted revenues of £35 million (US$47.61 million) while still allowing GRID to capture additional revenues above that level. The firm said this improves its risk-adjusted return characteristics.

Though not specified by GRID, revenues above the minimum floor are typically shared by owner and offtaker. That is different to a toll, where a fee is paid by the offtaker for some or all of a project’s capacity and financial performance, with no revenue or profit-sharing.

Those floor revenues do not include Capacity Market (CM) revenues for the projects, which will amount to £11 million in 2026, GRID added, meaning a total of £46 million in minimum revenues.

The toll with Octopus meanwhile provided £43 million in annual revenues across 568MW, including CM revenues, so the two deals are hard to compare.

Executives from both Octopus Energy and GRID discussed the toll deal with our sister site Energy-Storage.news at the time, in separate articles available for ESN Premium subscribers.

See the full version of this article, published earlier this week, on Solar Power Portal.

2 December 2025
NH Collection Vittorio Veneto, Rome, Italy
Across two packed days, the Summit focused on three core themes: revenue & trading, the lifecycle of the battery, and optimisation tools. Attendees explored innovative strategies for enhancing asset performance and longevity, with a spotlight on key markets like Germany, Italy, and the UK. Stay tuned for details on the 2025 edition of the Battery Asset Management Summit Europe, where we’ll continue to chart the path forward for energy storage asset management.
24 February 2026
InterContinental London - The O2, London, UK
This isn’t just another summit – it’s our biggest and most exhilarating Summit yet! Picture this: immersive workshop spaces where ideas come to life, dedicated industry working groups igniting innovation, live podcasts sparking lively discussions, hard-hitting keynotes that will leave you inspired, and an abundance of networking opportunities that will take your connections to new heights!

Read Next

July 29, 2025
The government of Portugal has announced plans to invest €400 million (US$466 million) to improve its grid management capabilities and increase its battery energy storage system (BESS) capacity.
July 29, 2025
Spanish energy firm Zelestra and Portuguese utility EDP have signed what they call the “first” solar-plus-storage power purchase agreement (PPA) in the Spanish renewables market.
Premium
July 24, 2025
Steady price falls the past few years have made lithium-ion BESS a real contender for long-duration energy storage (LDES), and that is now reflected in global project pipelines.
July 23, 2025
Activity in the UK battery energy storage system (BESS) market continues to grow substantially year-on-year despite numerous headwinds, as detailed in this H1 recap from our Market Research colleagues.
July 22, 2025
RM Funds has proposed a meeting of it and other Gore Street Energy Storage Fund (GSF) investors to discuss changes to the board following ‘sustained underperformance’, it said.

Most Popular

Email Newsletter