REG - Gresham House Energy - Long-term floor arrangement on 50MW project

Gresham House Energy Storage FundAnnouncement

06/08/2025 07:00

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RNS Number : 1268U  Gresham House Energy Storage Fund  06 August 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

6 August 2025

Gresham House Energy Storage Fund plc

("GRID" or the "Company")

 

Further long-term floor arrangement on a 50MW project

 

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund
investing in utility-scale battery energy storage systems (BESS), is pleased
to announce that it has signed a further floor arrangement with Markel Bermuda
Limited ("MBL"), managed by Markel's affiliate Nephila. This the final
agreement to be signed with respect to GRID's operational portfolio, this time
on the Enderby project (50MW/100MWh).

 

The additional floor agreement follows the 377MW of projects already announced
on the Nephila agreement on 3 July 2025 as well as other agreements with EdF
and Statkraft in recent weeks. As with the other contracts with MBL, this
floor is due to come into force following the closing of the upcoming
refinancing, for a seven-year period.

 

The signing of this latest floor arrangement marks the conclusion of the
revenue contracting process undertaken and will underpin the refinancing
process which is now in its final stages. The floor agreements now in place
will provide additional contracted revenues on 939MW (88%) of the current
1,072MW portfolio in addition to a further 637MW of pipeline projects.

 

The floor arrangements announced in recent weeks result in a relatively modest
increase to the revenue sharing fees. While fees vary by contract and are
confidential, across the three counterparties, the introduction of these floor
contracts raises the total share of revenues paid to our trading and insurance
counterparties by c.4 percentage points and represents a total average fee
level of less than 10%.  The Company believes this is an acceptable
incremental cost given the revenue protection offered which allows the Company
to fully service the interest and principal on the debt to be put in place,
whilst still allowing it to benefit from the majority of the merchant upside.

 

ENDS

 

For further information, please contact:

 

 Gresham House Energy Transition        +44 (0) 20 3837 6270

 Ben Guest

 James Bustin

 Harry Hutchinson

 Jefferies International Limited        +44 (0) 20 7029 8000

 Stuart Klein

 Gaudi Le Roux
 Harry Randall

 Peel Hunt                              +44 (0) 20 7418 8900

 Luke Simpson

 Huw Jeremy

 KL Communications                      gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman                         +44 (0) 20 3882 6644

 Charlotte Francis
 JTC (UK) Limited as Company Secretary  GHEnergyStorageCoSec@jtcgroup.com (mailto:GHEnergyStorageCoSec@jtcgroup.com)

 Christopher Gibbons                    +44 (0) 20 7409 0181

 

About the Company and the Manager

Gresham House Energy Storage Fund plc seeks to provide investors with an
attractive and sustainable dividend over the long term by investing in a
diversified portfolio of utility-scale battery energy storage systems (known
as BESS) located in Great Britain and internationally. In addition, the
Company seeks to provide investors with the prospect of capital growth through
the re-investment of net cash generated in excess of the target dividend in
accordance with the Company's investment policy.

 

The Company targets an unlevered Net Asset Value total return of 8% per annum
and a levered Net Asset Value total return of 15% per annum, in each case
calculated net of the Company's costs and expenses.

 

Gresham House Asset Management Ltd is the FCA authorised operating business of
Gresham House Ltd, a specialist alternative asset manager. Gresham House is
committed to operating responsibly and sustainably, taking the long view in
delivering sustainable investment solutions.

 

www.greshamhouse.com (http://www.greshamhouse.com)

 

Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling
infrastructure that will support the continued growth of renewable energy
sources such as wind and solar, essential to the UK's stated target to reduce
carbon emissions. They store excess energy generated by renewable energy
sources and then release that stored energy back into the grid during peak
hours when there is increased demand.

 

DISCLAIMERS

This announcement has been prepared for information purposes only. This
announcement does not constitute a prospectus relating to the Company and does
not constitute, or form part of, any offer or invitation to sell or issue, or
any solicitation of any offer to subscribe for, any shares in the Company in
any jurisdiction nor shall it, or any part of it, or the fact of its
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This announcement may not be used in making any investment decision in
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Any investment in Company is speculative, involves a high degree of risk, and
could result in the loss of all or substantially all of their investment.
Results can be positively or negatively affected by market conditions beyond
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contained herein is no indication as to future performance and there can be no
assurance that any targeted or projected returns will be achieved or that the
Company will be able to implement its investment strategy or achieve its
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only. There is no guarantee that any such returns can be achieved or can be
continued if achieved, nor that the Company will make any distributions
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Jefferies International Limited and Peel Hunt LLP, which are authorised and
regulated by the Financial Conduct Authority in the United Kingdom, are acting
only for the Company in connection with the matters described in this
announcement and are not acting for or advising any other person, or treating
any other person as their client, in relation thereto and will not be
responsible for providing the regulatory protection afforded to clients of
Jefferies or Peel Hunt (as applicable), or advice to any other person in
relation to the matters contained herein. Neither Jefferies, Peel Hunt, nor
any of their directors, officers, employees, advisers or agents accept any
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the Company, the Manager, Jefferies, Peel Hunt and their affiliates and their
respective officers, employees and agents expressly disclaim any and all
liability which may be based on this announcement and any errors therein or
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future projections, management targets, estimates, prospects or returns, if
any. Any views contained herein are based on financial, economic, market and
other conditions prevailing as at the date of this announcement. The
information contained in this announcement will not be updated.

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