TIDMHEIT
RNS Number : 3006Q
Harmony Energy Income Trust PLC
17 October 2023
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT
FOR RELEASE, PUBLICATION, TRANSMISSION, FORWARDING OR DISTRIBUTION,
DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE
UNITED STATES OR ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A
VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.
17 October 2023
Harmony Energy Income Trust plc
(the "Company" or "HEIT")
Company Update
Harmony Energy Income Trust plc, which invests in battery energy
storage systems ("BESS") in Great Britain, is pleased to announce
the successful energisation of two BESS projects: the 198 MWh / 99
MW Bumpers project, located in Buckinghamshire; and the 99 MWh /
49.5 MW Little Raith Project in Fife, Scotland.
Both projects were energised ahead of schedule and take the
Company's total operational capacity to 555 MWh / 277.5 MW, which
means that the Company's portfolio is c.70 per cent. operational
based on total capacity.
The Bumpers project becomes the Company's largest BESS project,
and the largest in Europe (by MWh), being 2 MWh larger in capacity
than the Company's Pillswood project. The Company now owns two of
the three largest operational BESS assets in Europe (by MWh).
The projects were developed by Harmony Energy Limited and
construction was managed by Tesla with oversight from the
Investment Adviser's project delivery team. They will be operated
through Autobidder, Tesla's algorithmic trading platform, along
with the Company's existing Pillswood, Broadditch and Farnham
projects.
The Company's final seed portfolio project, Rusholme (70 MWh /
35 MW), has completed construction and has been cold commissioned.
This project is currently awaiting confirmation of the energisation
date from the relevant DNO which is now expected to be in Q1
2024.
The Company's Wormald Green and Hawthorn Pit projects (acquired
in December 2022) are under construction, which is progressing in
line with their timeframes, with the Investment Adviser's project
delivery team overseeing progress.
An overview of the Company's portfolio is as follows:
Project MWh / MW Location Target Commercial Status
Operations Date
(1)
Pillswood 196 / 98 Yorkshire Operational Operational
Broadditch 22 / 11 Kent Operational Operational
Farnham 40 / 20 Surrey Operational Operational
Bumpers 198 / 99 Bucks. Operational Operational
Little Raith 99 / 49.5 Fife Operational Operational
Total Operational
Capacity 555 / 277.5
Rusholme 70 / 35 Yorkshire Q1 2024 Cold Commissioned
Wormald Green 66 /33 Yorkshire Q1 2024 Under Construction
Hawthorn Pit 99.8 / 49.9 County Durham Q2 2024 Under Construction
------------------ ----------- ------------- ----------------- ------------------
Total Portfolio 790.8 /
Capacity 395.4
(1) Dates are calendar quarters.
UK BESS Market Update
Whilst the UK Market for mainstream ancillary services has moved
towards saturation, as fully expected, the Market for longer
duration 2-hr batteries has seen positive trends in recent
weeks.
Portfolio revenues have trended upwards during September, driven
by a 25% increase in day-ahead wholesale market price spreads
compared to August, as Europe demand for gas increases in
preparation for winter. September also saw various instances of
negative wholesale pricing caused by high wind generation. As
previously seen in July, negative wholesale prices provide an
opportunity for BESS to be paid to charge, increasing demand on the
network. 2023 has seen more instances of negative pricing than any
previous year, which coincides with the milestone achieved in June
when the total capacity of installed wind generation in GB overtook
combined cycle gas generation for the first time.
Longer duration batteries can trade more MWh than shorter
duration batteries, and therefore any widening of wholesale spreads
is advantageous for longer duration batteries.
From October onwards, the Company's portfolio also began to
benefit from contracted Capacity Market payments as Pillswood,
Broadditch and Farnham commence delivery of their respective T-1
contracts. As previously announced, the early energisations of
Bumpers and Little Raith has allowed the Company to procure an
additional GBP403k of revenue (not previously budgeted) by
acquiring additional T-1 Capacity Market contract capacity. The
Company expects to procure further contracts in the coming
weeks.
A further update on the Market and portfolio operations will be
provided alongside the Company's next NAV update for the period to
31 October 2023.
Norman Crighton, Chair of Harmony Energy Income Trust plc,
said:
"The Board is very pleased with progress, as the portfolio is
now approximately 70 per cent. operational in advance of the winter
period. The fact that the projects are being delivered earlier than
expected, in a challenging environment where delays are well
publicised, is a testament to the strength of Harmony's delivery
team and the strength of our relationships with suppliers and DNOs.
To have delivered 555 MWh / 277.5 MWh through construction to
operational by the second anniversary of the Company's IPO is a
significant achievement."
END
For further information, please contact:
Harmony Energy Advisors Limited
Paul Mason
Max Slade
Peter Kavanagh
James Ritchie
info@harmonyenergy.co.uk
Berenberg
Gillian Martin
Ben Wright
Dan Gee-Summons +44 (0)20 3207 7800
Stifel Nicolaus Europe Limited
Mark Young
Edward Gibson-Watt
Rajpal Padam
Madison Kominski +44 (0)20 7710 7600
Camarco
Eddie Livingstone-Learmonth
Georgia Edmonds +44 (0)20 3757 4980
JTC (UK) Limited
Uloma Adighibe
Harmony.CoSec@jtcgroup.com +44 (0)20 3832 3877
LEI: 254900O3XI3CJNTKR453
About Harmony Energy Advisors Limited (the "Investment
Adviser")
The Investment Adviser is a wholly owned subsidiary of Harmony
Energy Limited.
The management team of the Investment Adviser have been
exclusively focussed on the energy storage sector (across multiple
projects) in Great Britain for over seven years, both from the
point of view of asset owner/developer and in a third-party
advisory capacity. The Investment Adviser is an appointed
representative of Laven Advisors LLP, which is authorised and
regulated by the Financial Conduct Authority.
Important Information
This announcement does not constitute an offer to sell or the
solicitation of an offer to acquire or subscribe for shares in the
Company in any jurisdiction. This distribution of this announcement
outside the UK may be restricted by law. No action has been taken
by the Company that would permit possession of this announcement in
any jurisdiction outside the UK where action for that purpose is
required. Persons outside the UK who come into possession of this
announcement should inform themselves about the distribution of
this announcement in their particular jurisdiction.
This announcement contains (or may contain) certain
forward-looking statements with respect to certain of the Company's
plans and/or the plans of one or more of its investee companies and
their respective current goals and expectations relating to their
respective future financial condition and performance and which
involve a number of risks and uncertainties. The Company's target
returns are a target only and there is no guarantee that these will
be achieved. This Company cautions readers that no forward-looking
statement is a guarantee of future performance and that actual
results could differ materially from those contained in the
forward-looking statements.
It should also be noted that any future NAV per Share announced
by the Company in due course will, in addition to the matters
described in this announcement, also be affected by valuation
movements in the Company's portfolio and other factors including,
without limitation, purchase prices of battery energy storage
systems and components, project development and construction costs,
income and pricing from contracts with National Grid ESO and other
counterparties, the potential for trading profitability in the
wholesale electricity markets and/or Balancing Mechanism,
performance of the Company's investments, and the availability of
projects which meet the
Company's minimum return parameters in accordance with the Company's investment policy .
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END
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