The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

UK BESS investor Gore Street reports strong financials despite macroeconomic headwinds

By Molly Lempriere

Despite macroeconomic challenges, Gore Street’s asset value surged 45% over the six months from  31 March 2022, as ancillary service revenues stayed strong.

The UK-headquartered battery energy storage fund highlighted the impact of rising short-term inflation, rising interest rates, high foreign exchange (FX) volatility and increasing construction costs on its portfolio.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

During the period, Gore Street Energy Storage Fund’s total portfolio increased to 698.2MW from 628.5MW as of 31 March 2022. It had 16 operational projects, with a total capacity of 291.6MW across four markets: Britain, Ireland, Germany and the ERCOT market in Texas. This is up from 12 projects with a capacity of 231.7MW as of the end of March.

“I am pleased to report another successful period of growth as we continue to deliver on our strategic objectives of providing an attractive level of returns to shareholders despite the changing macro inflationary environment through providing an essential service enabling the renewable transition and enhancing energy security,” said Alex O’Cinneide, CEO of Gore Street Capital, the investment adviser to the company.

“The portfolio grew significantly during the period, with total capacity reaching nearly 900MW in aggregate post-period end, of which 291MW is operational and generating strong cash flow for the company.”

Gore Street’s British assets made up the bulk of the company’s revenue during the period, benefitting from the significant volatility in the market. The revenue was predominantly derived from Dynamic Containment and Firm Frequency Response ancillary services, as they offered the best returns with the Capacity Market adding to the revenue stack.

Gore Street’s net asset value (NAV) grew from £369.6 million (US$448.36 million) in March 2022 to £534.79 million as of September 2022. Its NAV per share increased 3.7% to 111.1 pence, and its NAV total return was 4.65% for the period.

To read the full version of this story, visit Solar Power Portal.’ publisher Solar Media will host the 8th annual Energy Storage Summit EU in London, 22-23 February 2023. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

Read Next

May 30, 2024
Battery storage thrives on energy market volatility meaning there will be good years and bad years, a panellist at Solar Media’s Renewable Energy Revenues Summit 2024 said last week.
May 30, 2024
The European Council has formally adopted the EU’s support package for its clean energy manufacturing industry, the Net-Zero Industry Act (NZIA), amidst mixed fortunes for local battery gigafactory projects.
May 30, 2024
China’s National Development and Reform Commission and the National Energy Administration have issued new rules for the power market.
May 29, 2024
Denmark-headquartered independent power producer (IPP) Ørsted and investment bank JP Morgan have closed a tax equity financing of US$680 million for solar and storage projects in the US.
May 29, 2024
Utility EWS AG and developer MW Storage have completed the expansion of a battery energy storage system (BESS) project in Switzerland from 20MW to 28MW, making it the country’s largest.

Most Popular

Email Newsletter