Gore Street Energy Storage Fund PLC UK Capacity Market (6691H)
17 November 2018 - 2:49AM
UK Regulatory
TIDMGSF
RNS Number : 6691H
Gore Street Energy Storage Fund PLC
16 November 2018
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street" or "GSF")
European Court of Justice Ruling on UK Capacity Market
Gore Street, the UK's first listed energy storage fund investing
in income producing assets in the UK and internationally, notes
yesterday's ruling by the European Court of Justice ("ECJ") that
the UK's capacity market mechanism ("Capacity Market") could be in
breach of EU State Aid Rules. As a consequence, the National Grid
has temporarily suspended the Capacity Market and payments for all
existing agreements. The UK Government has responded by saying that
it will be "working closely with the European Commission so that
the capacity market can be reinstated as soon as possible". Gore
Street views this development as positive as it should ultimately
strengthen the importance of electricity storage to the UK
electricity market.
The Capacity Market enables generators and battery projects to
bid for contracts to provide back-up power to the grid during times
of peak demand. The judgement by the ECJ was issued in response to
a legal challenge by Tempus Energy, the clean technology firm,
which argued that the mechanism for securing back up power in this
way unfairly favoured fossil fuel generators over newer, cleaner
technologies.
Although, in the short term, the ruling may have an adverse
impact on the future revenues of GSF's projects if the position on
this ruling is not clarified promptly, the Board does not expect
this to be material in the longer term. Indeed, the prospective
rebalancing of the mechanism in favour of battery storage
generators could have a materially positive revenue impact on GSF.
The Company however is studying the full impact of the ruling, the
implications of which are complex and uncertain at this stage, on
both the wider energy market and also on its own business and will
make a further announcement in due course once the UK's position is
more clear.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's
investment manager, commented:
"We expect that the UK government will propose new rules to the
European Commission as quickly as possible and to work to restart
this market in the near future. What is clear is that these new
proposals will have to be positive for cleaner technologies over
traditional fossil fuel generators, and we are therefore encouraged
that it will further support the importance of storage to the UK
electricity market. Capacity payments were a minor portion of the
revenue of the portfolio and so view this on balance as containing
positive implications for Gore Street's portfolio."
The Legal Entity Identifier of the Company is
213800GPUNVGG81G4O21.
For further information:
Gore Street Capital Limited
Alex O'Cinneide Tel: +44 (0) 20 3826 0290
Stockdale Securities Limited
Daniel Harris / Rose Ramsden (Corporate Tel: +44 (0) 20 7601 6000
Finance)
Henry Willcocks / Fiona Conroy (Corporate
Broking)
Media enquiries:
Buchanan
Charles Ryland / Steph Watson / Tel: +44 (0) 20 7466 5000
Henry Wilson
Email: Gorestreet@buchanan.uk.com
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed energy storage fund and
seeks to provide shareholders with a significant opportunity to
invest in a diversified portfolio of utility scale energy storage
projects. In addition to growth through exploiting its considerable
pipeline, the Company aims to deliver consistent and robust
dividend yield as income distributions to its shareholders.
This information is provided by RNS, the news service of the
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END
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