Gresham House Energy Storage Fund (GRID) has announced the signing of a Sale and Purchase Agreement for the conditional acquisition of a 100MW/200MWh battery storage system in West Yorkshire.
The project, located in Elland, West Yorkshire and referred to as Elland 2, has a 2-hour duration and will be extendable to a longer duration “in due course”, according to GRID. The company calls itself the biggest UK-listed fund investing in utility-scale battery energy storage systems (BESS).
Elland 2 is adjacent to an operational site, Elland 1, already owned by GRID. According to Ben Guest, fund manager of GRID and managing director of the more broadly focused Gresham House Energy Transition, said that the company intends to begin construction of Elland 2 “within the next few months”.
“Once finished, this project, with a capacity of 100MW/200MWh, will be larger than any other in the current operational portfolio,” Guest added.
The acquisition is conditional on the company confirming it is satisfied that the project will receive a Gate 2 grid connection offer—issued by March 2026 at the latest.
As part of the UK National Energy System Operator’s (NESO’s) grid connection reforms, projects not issued Gate 2 offers are essentially unviable (but do have the option to reapply).
GRID’s NAV rises in Q3 2025
The acquisition announcement coincides with the fund publishing its net asset value (NAV) for the third quarter of the year. As of 30 September, the fund had NAV of £658.3 million or 115.68p per share, up 7.4% on the previous quarter.
The improvements during Q3 included increased cashflow from augmentations funded by GRID’s refinancing and projects moving into the commissioning stage. The fund’s operational assets are valued at an average of £706/MW, and the fund’s operational capacity as of Q3’s end was 1,072MW/1,701MWh.
In August, GRID completed the refinancing of its operational debt facilities. The refinancing replaced existing facilities with a £220 million loan with a seven-year legal maturity and an amortisation profile over 14 years.
The fund’s portfolio generated revenues of £13.3 million and EBITDA of £8.8 million in Q3 2025.
Two of its BESS assets are in commissioning, the 40MW/80MWh Shilton Lane site and 87MW/174MWh West Bradford project. These are each expected to be revenue-generating by December of this year and, along with the 100MW/200MWh Melksham BESS, which was fully operational in October, will have the premium applied to their discount rates in the Q3 NAV removed, providing an uplift at year’s end.
The valuations this quarter include the seven remaining augmentations (out of eight) of the operational portfolio sites which have now been funded through the refinancing process. The Glassenbury site, which was the first augmentation, was included in Q2’s NAV.
The projects are all being augmented to at least 2 hours and, altogether, will increase the capacity of the operational portfolio by 350MWh.
John Leggate, chair of the fund, said the “meaningful uplift” seen in Q3 was “driven primarily by strategic initiatives”.
