Gresham House Energy Storage Fund (LSE:GRID), the UK's largest listed fund investing in utility-scale battery energy storage systems, has received a provisional award of a 25-year long duration energy storage (LDES) cap and floor contract for its Ocker Hill project, following Ofgem's "minded to" decision published on 26 June.
The Ocker Hill project, a 240MW battery storage facility in Wednesbury, West Midlands, has been selected at a configuration of 145MW and 1,160MWh, representing an eight-hour duration, with an expected grid connection date of October 2029.
Under the cap and floor framework, revenue support is structured around benchmark target rates of return of 4.47% at the floor and 7.31% at the cap, both expressed as CPIH-real rates, with project-specific levels to be confirmed at Final Investment Decision.
Ocker Hill is one of 16 projects provisionally selected by Ofgem, with final awards expected in autumn 2026 following a consultation period closing 7 August.
Fund Manager Ben Guest said the eight-hour configuration "draws on the optionality we identified at acquisition" and would bring "long term Government backed, index-linked, revenue into GRID's portfolio."
