Gresham House Energy Storage (GRID), a leading UK-focused battery energy storage fund, has significantly bolstered its financial stability by signing long-term floor-pricing agreements with Statkraft Markets and Markel Bermuda. These agreements, announced on July 3, 2025, are set to lock in approximately 50% of the trust's total projected revenues once fully implemented, marking a pivotal step in de-risking its portfolio and securing advantageous debt refinancing terms.

The new contracts supplement GRID's existing two-year tolling agreements with Octopus Energy, which cover 568MW of its operational capacity. With the full implementation of the floor agreements and the expiration of current tolling arrangements, 789MW—representing 74% of GRID's 1,072MW portfolio—will secure minimum annual contracted revenues of £35 million. This figure excludes an additional estimated £11 million from capacity market contracted revenues expected in 2026, providing substantial revenue predictability while retaining exposure to upside merchant trading opportunities above the contracted floors.

Both Statkraft Markets and Markel Bermuda are part of corporate groups holding investment-grade status, underscoring the quality and reliability of these new revenue streams. GRID anticipates finalizing additional contracts for operational projects with another investment-grade counterparty, a move critical to concluding the refinancing of its operational portfolio. This strategic financial restructuring aims to ensure that future debt servicing, encompassing both interest and principal repayments, will be fully covered by cash flow derived from these contracted revenues.

This enhanced revenue visibility is instrumental in unlocking more favorable terms for GRID's previously announced new debt facility, which is slated to refinance existing debt facilities imminently. The refinancing will not only support essential upgrades to existing projects but also enable the board to announce a revised dividend policy, reflecting the improved financial outlook and stability. Furthermore, the floor agreements and potential project-level financing are expected to facilitate the construction of new projects within GRID's pipeline, aligning with its three-year plan to achieve annualised EBITDA of £150 million.

The phased implementation of these agreements will see 115MW of assets subject to floor agreements in 2025, generating an incremental £2.9 million in contracted revenue. By 2026, a further 231MW of assets are projected to benefit from these agreements, contributing an additional £10.5 million in contracted revenue, solidifying GRID's position in the rapidly evolving energy storage market.