TIDMGSF
RNS Number : 5223A
Gore Street Energy Storage Fund PLC
03 February 2022
3 February 2022
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street")
GB Portfolio - Achieving Industry Leading Returns
Gore Street Energy Storage Fund, London's first listed and
category defining energy storage fund supporting the transition to
a low carbon society, is pleased to provide a portfolio update for
its Great Britain (GB) assets.
Industry leading returns
During Q4 2021[1], three of the Company's sites were ranked as
one of the highest revenue generating assets per MWh, according to
Modo Energy, a specialist independent data provider for the energy
markets. The three sites were Lower Road (10MW), Larport Farm
(19.5MW) and Breach Farm (10MW). Additionally, on the alternate
metric of revenue generated per MW, the Company's asset at Larport
Farm ranked second. In January 2022, the Company's assets were
again listed as the best performing assets for the month, when
Breach Farm and Lower Road ranked as the top 2 highest revenue
assets on both a MW and MWh basis.
All of these assets benefit from frequency contracts, for which
prices have recently reached record levels sustained at
approximately GBP25 per MW per hour, delivering returns which are
significantly above the Company's base case across Gore Street's GB
operational portfolio (110MW) for the relevant months. This is a
further example of the flexible nature of the Company's asset base
where the investment team is able to take advantage of a variety of
contracts depending on prevailing market conditions.
The Modo Energy publication confirms that shorter duration
battery systems are achieving the same (or higher) levels of
ancillary revenue when compared to sites with longer duration. As
shorter duration battery systems require lower Capex, the Company
is able to commit less capital whilst capturing the same (or
higher) level of revenues, maximising profitability. Currently, the
majority of the GB portfolio has a duration of circa 1-hour and the
Company expects to increase sites' duration when required to meet
its investment goals. The Company continuously assesses portfolio
capacity and is able to expand sites' duration when revenue
justifies capex expenditure.
Trading opportunities captured
During Q4 2021, energy markets in GB experienced historic highs
in energy prices as well as volatility. This was driven by
historical low wind generation, planned and unplanned generation
plant outages, unforeseen interconnector failure and high gas
prices. Gore Street has demonstrated that its assets are flexible
and capable of capturing trading revenue when, and if, such revenue
stream offers higher gross margins when compared to other available
revenue-generating services.
The continuous scale up of renewable energy generation, and the
consequential need for grid flexibility to support such growth,
suggests that the market fundamentals will remain supportive, thus
sustaining high levels of volatility throughout 2022.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's
investment adviser commented:
"Time and again, the Company has proven its ability to acquire
attractive assets at favourable terms. We believe Gore Street's
acquisition price discipline, together with our leading operational
and development expertise are the keys to unlocking long term
outperformance from this asset class. Across GB, the Company is
seeing pricing for its services reach all-time highs from frequency
revenue stream opportunities which independent commentator Modo
Energy has shown resulted in leading asset performance during past
months. Meanwhile, we continue to see extremely attractive
significant acquisition opportunities for the Company not just in
GB and Ireland but also internationally, particularly in European
and North American markets and look forward to providing an update
in due course."
ENDS
The Legal Entity Identifier of the Company is
213800GPUNVGG81G4O21.
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso / Maria Vaggione Tel: +44 (0) 20 3826 0290
Shore Capital (Joint Corporate Broker)
Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory) Tel: +44 (0) 20 7 408 4090
Fiona Conroy (Corporate Broking)
J. P. Morgan Cazenove (Joint Corporate Broker)
William Simmonds / Jérémie Birnbaum Tel: +44 (0) 20 7742
(Corporate Finance) 4000
Buchanan (Media enquiries)
Charles Ryland / Henry Wilson / George Beale Tel: +44 (0) 20
7466 5000
Email: Gorestreet@buchanan.uk.com
JTC (UK) Limited, Company Secretary Tel: +44 (0) 20 7409
0181
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.
The Company targets an annual dividend of 7.0% o f NAV per
Ordinary Share in each financial year, subject to a minimum target
of 7.0 pence per Ordinary Share. Dividends are paid quarterly.
About MW and MWh metrics
MW and MWh are the units used to define (at a high level)
battery projects' capabilities. MW ratings refer to power
capability, whilst MWh refers to energy capacity.
Disclaimer
This announcement has been issued by, and is the sole
responsibility of, Gore Street Energy Storage Fund plc (the
"Company").
This announcement is for information purposes only and is not
intended to and does not constitute or form part of any offer or
invitation to purchase or subscribe for, or any solicitation to
purchase or subscribe for shares in any jurisdiction in which such
an offer or solicitation is unlawful.
The information and opinions contained in this announcement are
provided as at the date of the announcement and are subject to
change without notice and no representation or warranty, express or
implied, is or will be made in relation to the accuracy or
completeness of the information contained herein.
The information in this announcement may include forward-looking
statements, which are based on the current expectations, intentions
and projections about future events and trends or other matters
that are not historical facts and in certain cases can be
identified by the use of terms such as "may", "will", "should",
"could", "expect", "anticipate", "project", "estimate", "intend",
"continue", "target", "believe" (or the negatives thereof) or other
variations thereof or comparable terminology. These forward-looking
statements, as well as those included in any related materials, are
not guarantees of future performance and are subject to known and
unknown risks, uncertainties, assumptions about the Company and
other factors, including, among other things, the development of
its business, trends in its industry, and future capital
expenditures and acquisitions. In light of these risks,
uncertainties and assumptions, the events in the forward-looking
statements may not occur and actual results may differ materially
from those expressed or implied by such forward looking statements.
Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking
statements.
[1]
https://www.linkedin.com/company/modo-energy/posts/?feedView=all
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END
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