RNS Number : 2927N
Gore Street Energy Storage Fund PLC
31 May 2022
31 May 2022
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street")
Strong Portfolio Performance and Further Construction Milestones
Gore Street, London's first energy storage fund supporting the
transition to low carbon power, is pleased to provide the following
positive portfolio update:
Operational Asset Performance and Trading Update
The Company's portfolio is performing strongly on every grid in
which it operates - Great Britain (GB), Ireland, Germany, and the
USA (Texas). During the final quarter of the Company's financial
year (1 January - 31 March 2022):
-- All GB assets performed very well, averaging GBP19/MW/hour
during the quarter, with February being the strongest month.
Revenue per MWh in Q1 2022 was 65 per cent. higher when compared
with the same quarter last year and 22 per cent. higher than 2021
-- GB assets again achieved good technical availability of 96 per cent. during the quarter.
-- Revenue from the Company's two Northern Ireland assets
exceeded forecast, particularly in February when they achieved an
average price of c. GBP31/MW/hour, contributing c. GBP2m of net
revenue in February alone, towards the GBP 4.9m net revenue
achieved in the quarter by these assets.
-- The newly acquired operational asset in Germany, Cremzow,
secured an average price of c. EUR17/MW/hour in the quarter, above
forecast at acquisition, with March being the strongest month (c.
-- The newly acquired three operational assets in ERCOT,
Texas, generated net revenue within their budgeted range, averaging
$18/MW/hour in the month of March, following their acquisition in
The strong performance across the Company's portfolio during the
first quarter of 2022 is a result of strong in-house expertise,
selecting an optimal mix of contracts available to its storage
sites, and favourable market conditions, consisting of: in GB, the
Company's portfolio benefiting from trading opportunities and high
demand of ancillary services from service operators; in Northern
Ireland, wind penetration contributing to higher levels of revenue
for the Company's assets.
The new financial year has started well across the Company's
asset base. In GB in April, National Grid released an auction for a
new service called Dynamic Moderation, in which Gore Street
successfully participated. Dynamic Moderation is part of a suite of
services aimed at replacing FFR in the near future. This
demonstrates: (i) the flexibility of Gore Street's assets to
perform under new contracts, (ii) the agility of the Investment
Manager's team in participating in new auctions from inception and,
finally (iii) the diversification of the portfolio's revenue
Enderby (57MW/57MWh), England: EPC Contract Secured
Fluence Energy has been selected as the EPC (Engineering,
Procurement, Construction) contractor for the Company's energy
storage asset currently under construction in Enderby (57MW/57MWh),
England. This asset is expected to become operational in Q4 2023,
in line with the timeline announced at the time of its
The contracts include the EPC agreements and long-term service
agreements (O&M) for maintenance and operation, including
Availability and Energy Capacity warranties, as well as stringent
performance requirements to be achieved by Fluence, a global leader
in energy storage and digital applications for renewables and
Porterstown (30MW/30MWh), Republic of Ireland: DS3 Contract
Porterstown, the Company's energy storage asset near Dublin,
Ireland, was energised in May 2022 and will commence generating
cash flow in July, under a DS3 capped contract.
This milestone marks the completion of an initial capacity of
30MW/30MWh (phase 1) of the total 90MW capacity available on the
site, with the remaining 60 MW expected to be completed by 2024
Porterstown is the first asset in Ireland to operate under the
DS3 capped contract. Porterstown will deliver DS3 services for a
six-year term contract beginning July 2022, under a fixed-rate,
with EirGrid, Ireland's state-owned electric power transmission
System duration and yield optimisation
The Company has, on average, c.1-hour system duration for the
nine projects currently operational in GB.
Today, the optimal revenue mix that represents maximum payment
for storage batteries is primarily comprised of grid balancing
services (FFR and Dynamic Containment) - all of which are contracts
that can be delivered by batteries of up to 1-hour in duration.
Gore Street's strategy is centred on profit optimisation and the
Company will continue to minimise capex by designing assets that
are best suited to the current optimal revenue mix. Gore Street
estimates the excess return on a 1-hour duration battery investment
over long duration batteries is increasing given the recent rise in
battery procurement costs.
In Northern Ireland, the Company has opted for sub-30-minute
duration batteries, which allows the Company to deliver six
ancillary services under DS3 uncapped contracts, and these
delivered strong performance for the quarter, as noted above.
In the case of the Company's operations in Texas, US, the market
dynamics and revenue mix are distinct from the ones in GB and
Ireland. Gore Street seized an attractive acquisition opportunity
of assets with 2-hour duration, which allows the Company to capture
trading opportunities, as and when they become increasingly
prominent in the ERCOT market, alongside current lucrative
ancillary services contracts.
Texas (c. 80MW/ c. 160MWh), US: Acquisition Progress
Further to the announcement on 10 March of Gore Street's first
acquisition in the US, the Company is pleased to report that the
required conditions have been satisfied for the completion of four
out of the eight energy storage assets in Texas. Three of the four
assets now acquired (Synder, Westover and Sweetwater:
c.30MW/c.60MWh) are fully operational and are of two-hour duration.
The fourth asset (Mineral Wells) is under construction and is
expected to become operational in Q4 2023.
The Company expects to complete the acquisition of the remaining
four assets in the coming months, once the various condition
precedents have been met.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's
investment manager, commented:
"The Company is delighted to update shareholders on the
Company's successful progress, both domestically and
internationally, including a positive performance of our
operational portfolio, further capacity coming on stream and
significant developments for sites in construction.
"Performance during the last quarter of our fiscal year has been
better than expected, with assets outperforming across all our
"We are also pleased to see our GB portfolio matching the same
levels of revenues with other market participants with longer
durations. We continue to base our strategy on current market
conditions and revenue streams and therefore continue to favour one
hour battery systems for the GB market. We believe this results in
substantial cost efficiencies and has significantly rewarded our
"These assets offer important flexibility to participate in
multiple attractive revenue streams, including trading. At times of
material market price dislocation, this is a highly profitable use
for the Company's portfolio, which is ready to participate when
ideal market conditions become available."
The Legal Entity Identifier of the Company is
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso 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
JTC (UK) Limited, Company Secretary Tel: +44 (0) 20 7409
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.
 Technical availability is the percentage of planned
production time without unexpected technical difficulties or
 Acquisition closed on 4 March 2022 with a lock box date on 1
 Acquisition of the three operational sites closed in April
2022 with a lock box date on 1 March 2022 .
 Phase 1 capacity only.
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