UK investment fund Gresham House pens optimisation deal for 74MW of storage

Gresham House's recently-acquired 49MW Red Scar battery is to be optimised against the wholesale markets. Image: Gresham House

UK-based Gresham House Energy Storage Fund has sealed the deal on its latest battery optimisation agreement.

Battery asset optimisation firm Habitat Energy is to optimise 74MW of Gresham’s assets through its PowerIQ platform.

The three assets are to be optimised across the wholesale markets, with Habitat using an algorithmic and machine learning approach. The degradation of the batteries is also to be “carefully managed” to extend their useful life.

Habitat’s proprietary software is capable of real-time trading, forecasting and asset modelling to enable participation in wholesale, balancing and ancillary services markets.

The 49MW Red Scar battery forms part of the agreement, as does a 20MW and 5MW site in Whiltshire and Wolverhampton respectively.

“Our aim is to provide unique insight for a unique asset class and add value in the short- and long-term for our clients,” said Andrew Luers, CEO of Habitat Energy, adding that the company is “delighted” to be helping accelerate the deployment of “much-needed” flexible power assets.

Gresham House has racked up a series of acquisitions and optimisation deals in the past few months, including two acquisitions from VLC Energy with a combined capacity of 50MW.

The Red Scar battery was also recently acquired, with the fund having had its eye on the project for a year, outlining it as one of its portfolio projects in its initial public offering (IPO) prospectus in October 2018, and confirming the project was still on its radar in August when it took a 5% stake in Noriker Power.

Ben Guest, director of new energy at Gresham House Asset Management and manager of Gresham House Energy Storage Fund, said Gresham is "proud" to have selected Habitat Energy for the optimisation of the projects.

"We have been impressed by Habitat’s team, trading acumen and algorithmic trading approach giving us real confidence that they can achieve help us achieve our target revenues for these projects," Gues added.

Gresham has also recently signed optimisation deals with Flexitricity for the 20MW Noriker Staunch project, a mix of gas generators and lithium-ion battery storage, and KiWi Power for a 15MW project to be optimised against multiple revenue streams, including ancillary services and participating in the Balancing Mechanism.

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