On July 3rd, Gresham House announced two revenue floor agreements with Statkraft and Nephila Climate/Markel Insurance for 789 MW of battery energy storage.

The agreement with Statkraft involves a traditional revenue floor agreement. However, the Markel agreement is a revenue swap - a type of deal that has been more common in Australia - but is the first publicly announced offtake structure of its kind in Great Britain.

The agreements secure £35mn of annual revenue

The two agreements will guarantee Gresham House £35mn/year from 74% of their 1,072 MW battery energy storage portfolio. This puts the estimated revenue floor at £44k/MW/year - higher than average battery revenues in nine months across 2024. Gresham House also expects a further £11mn in Capacity Market revenue across its entire portfolio. This includes assets with a range of durations, averaging £10.3k/MW/year.