Gresham House Energy Storage Fund (GRID) has announced the signing of a sale and purchase agreement for the conditional purchase of a 100MW/200MWh battery storage system in West Yorkshire.
The project, located in Elland, West Yorkshire and called Elland 2, will last for two hours and could be extended to a longer duration “in due course”, GRID said. The company calls itself the largest UK listed fund investing in large-scale battery energy storage systems (BESS).
Elland 2 is adjacent to an operational location, Elland 1, which is already owned by GRID. Ben Guest, GRID fund manager and director of the broader Gresham House Energy Transition, said the company plans to start construction on Elland 2 “within the coming months”.
“Once completed, this project, with a capacity of 100MW/200MWh, will be larger than any other project in the current operating portfolio,” Guest added.
The acquisition is subject to the company’s confirmation that the project will receive a Gate 2 offer for grid connection, to be issued by March 2026.
As part of the UK’s National Energy System Operator (NESO) grid connection reforms, projects that have not received Gate 2 bids are essentially unviable (but do have the option to reapply).
GRID’s NAV will increase in the third quarter of 2025
The acquisition announcement coincides with the publication of the fund’s net asset value (NAV) for the third quarter of the year. As of September 30, the fund had a net asset value of £658.3 million or 115.68p per share, an increase of 7.4% on the previous quarter.
Improvements during the third quarter included increased cash flow from expansions financed by the GRID refinancing and projects entering the commissioning phase. The fund’s operating assets are valued at an average of £706/MW operational capacity of the fund at the end of the third quarter the capacity was 1,072 MW/1,701 MWh.
In August, GRID completed the refinancing of its operating debt facilities. The refinancing replaced the existing facilities with a £220 million loan with a statutory term of seven years and a 14-year amortization profile.
The fund’s portfolio generated revenues of £13.3 million and EBITDA of £8.8 million in the third quarter of 2025.
Two of the BESS assets have been commissioned: the 40MW/80MWh Shilton Lane site and the 87MW/174MWh West Bradford project. These are each expected to generate revenue in December this year and, together with the 100MW/200MWh Melksham BESS, which was fully operational in October, the premium applied to their discount rates in the third quarter NAV will be removed, providing a year-end increase.
This quarter’s valuations include the seven remaining expansions (out of eight) of the operating portfolio locations that have now been financed through the refinancing process. The Glassenbury site, the first expansionwas included in the second quarter NAV.
The projects will all be expanded to a minimum of 2 hours and will increase the capacity of the operational portfolio by a total of 350 MWh.
John Leggate, chairman of the fund, said the “meaningful increase” in the third quarter was “mainly driven by strategic initiatives”.
