The deal, which is indexed to UK inflation, requires Drax to pay a fixed annual tolling fee over the 10-year term
International News via Reuters:
British power firm Drax Group said on Friday it has signed a 10-year tolling agreement for a 250-megawatt battery energy storage system (BESS) with Fidra Energy, as the company accelerates its broader battery storage business.
The deal, which is indexed to UK inflation, requires Drax to pay a fixed annual tolling fee over the 10-year term. Fidra is expected to take a final investment decision on the project by the third quarter of 2026, and begin operations in the second half of 2029.
Under the agreement, Drax will toll the two-hour battery storage asset at West Burton in Nottinghamshire, with no upfront capital cost as construction, maintenance, and availability risk remain with Fidra.
A tolling agreement lets one company operate another party’s energy asset for a fee, without owning or building it.
“Flexible Generation technologies like battery storage will support a secure, affordable and clean energy system for British homes and businesses,” said Drax Group CEO Will Gardiner in a statement.
“Our first BESS tolling agreement is an important step in our ambition for a gigawatt scale pipeline of battery storage opportunities,” said Gardiner.
Reporting by Ankita Bora in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich
