Drax has signed a tolling agreement with West Burton C Ltd, a company owned by Fidra Energy, an independent battery energy storage system (BESS) developer, for 250 MW (500 MWh) of new BESS capacity.
Under the agreement Fidra will retain responsibility for construction, maintenance, and availability of the asset during the contract period. In return Drax will pay a fixed annual tolling fee over the agreed term of 10 years from the COD, in return for full operational control and dispatch rights, retaining all revenues (excluding capacity market revenues).
Drax sees the agreement as a capital light opportunity to provide additional BESS capacity for the group’s FlexGen portfolio, alongside physical ownership of BESS asset.
The agreement is subject to Fidra taking a final investment decision on the project by 3Q26 and commercial operations by 2H29.
Drax Group CEO, Will Gardiner, commented: “Flexible Generation technologies like battery storage will support a secure, affordable, and clean energy system for British homes and businesses. Our first BESS tolling agreement is an important step in our ambition for a gigawatt scale pipeline of battery storage opportunities, alongside our recent acquisitions of Flexitricity and three battery storage developments. We are working to create opportunities for growth and value creation in our FlexGen portfolio that are aligned to the UK’s energy needs, and are underpinned by strong cash generation, disciplined capital allocation, and attractive returns for shareholders.”
Drax is developing a gigawatt scale pipeline of BESS opportunities comprised of physical assets and the capabilities to optimise third-party assets with the provision of route to market, floor, and tolling structures.
In October 2025, Drax signed an agreement with Apatura Ltd to acquire three BESS projects, which when fully commissioned will provide capacity totalling 260 MW. In January 2026, Drax acquired Flexitricity, providing an optimisation platform for the development of the group’s FlexGen business, including BESS.
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