Finance
UK's Drax inks 10-year tolling agreement for 250MW battery storage in England
Published by Global Banking & Finance Review®
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Drax Group inks a 10-year agreement for a 250MW battery storage system in England, enhancing its energy storage business without upfront costs.
Jan 30 (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)
Battery energy storage refers to systems that store energy for later use, helping to balance supply and demand in the energy grid.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Renewable energy is energy generated from natural resources that are replenished, such as solar, wind, and hydroelectric power.
Flexible generation technology refers to energy systems that can quickly adjust output to meet changing demand, enhancing grid reliability.
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