Statkraft signs multi-asset optimisation PPAs with Gresham House Energy Storage Fund

Statkraft, Europe’s largest renewable power generator, and a leading provider of market access and optimisation services has signed a series of optimisation PPAs with Gresham House Energy Storage Fund plc (GRID), covering a portfolio of 412MW of GRID’s existing BESS assets.

Statkraft has agreed to provide a minimum income guarantee across these assets, which will support GRID in augmenting and refinancing them. As one of Europe's largest third-party renewable power traders, Statkraft will leverage its expertise in asset optimisation and algorithmic trading to optimise this portfolio across all relevant energy and ancillary markets.

The GRID portfolio comprises of the following thirteen BESS assets: Nevendon (15MW), Cleator (10MW), Arbroath (35MW), Bloxwich (41MW), Byers Brae (30MW), Coupar Angus (40MW), Grendon (50MW), Red Scar (49MW), Roundponds (20MW), Rufford (7MW), Stairfoot (40MW), Tynemouth (25MW) and Wickham (50MW). As part of the agreement, Statkraft will convert existing optimisation PPAs to incorporate them into the floor portfolio, so they benefit from the minimum income.

Batteries  enable energy from renewable sources to be stored during times of low demand and dispatched at times of peak electricity demand, meaning greater energy security for consumers and business, and more stable energy bills. As a result of this agreement, Statkraft now has an optimisation portfolio in Great Britain which is in excess of 3GW, maintaining a leading position in the optimisation PPA market.

Brian Lonn, Statkraft’s Head of UK Flexibility, said: “We’re delighted to build on our existing strong relationship with GRID and look forward to collaborating with them in the coming years. This agreement means Statkraft can support GRID in delivering shareholder value, as well as contributing towards the decarbonisation of the GB energy system.”

Ben Guest, Fund Manager, Gresham House Energy Storage Fund, said: “In recent years, the Gresham House team has worked closely with Statkraft and have come to appreciate the collaborative and flexible approach of the team.  

“PPAs with minimum income guarantees are relatively new to the BESS industry but are common contractual arrangements in the world of renewable energy infrastructure, to support project financing of assets. We are pleased to be expanding our relationship with Statkraft through  this significant new agreement.”