The Energy Storage Report 2024

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

UK revenues ‘markedly lower’ in 2023: Harmony Energy echoes Gresham House update


UK energy storage fund manager Harmony Energy has said revenues in 2023 were significantly lower than 2022, postponing its dividend, after peer Gresham House said the same thing earlier in the week.

Its fund Harmony Energy Income Trust (HEIT) signalled that battery energy storage system (BESS) revenues for the year ended 31 October 2023 were markedly lower than the same period in 2022.

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

Revealed in the firm’s recent trading update, the discussion around a “weak revenue environment for BESS assets” echoes the thoughts of Gresham House Energy Storage Fund, another major UK-based storage investor, who said earlier this week that this was due to assets not being able to participate in balancing the GB grid or replacing gas-fired generation to their fullest capability.

Although HEIT did not reveal the financial impact the weaker environment has had on its BESS assets fully, its quarterly net asset value update and audited annual results are earmarked for later this month and should provide further clarity.

Multiple factors contribute to a reduction in revenue which ‘exceeded market expectations’

EIT revealed multiple drivers that contributed to a reduction in revenue that “exceeded market expectations”, specifically in a macro and sector-specific sense.

The first major influence is the saturation of ancillary service markets. Due to the high rate in the buildout of BESS projects in GB this has led to the saturation of ancillary services and thus driven record low clearing prices.

Interestingly, this was “widely anticipated” and the firm’s two-hour duration BESS portfolio is positioned to protect against the event and the wider balancing mechanism (BM). However, previously reported that the impact had been “far sharper than projected” and thus rocked numerous BESS portfolios including Gresham House.

See the full version of this article on our sister site Solar Power Portal.

Read Next

July 10, 2024
A 150MW BESS at the flagship Cleve Hill solar and storage project in the UK can now go ahead after its refusal by the local council was successfully appealed.
July 5, 2024
Battery storage technology well and truly arrived at this year’s edition of Glastonbury, the world’s largest music and arts festival, helping power numerous parts including the Arcadia stage.
July 3, 2024
Construction is underway on Cero Generation’s first solar and storage project in the UK, Larks Green, while its second one will differ substantially on the size of the grid connection.
July 3, 2024
Vanadium redox flow battery (VRFB) firm Invinity Energy Systems sold or won funding for 136.7MWh of product in 2023, while growing revenues 500%.
June 28, 2024
The UK and Ireland’s energy storage pipeline is rapidly growing, with co-located solar PV and storage comprising around 20% of planned capacity, writes Mollie McCorkindale of Solar Media Market Research.

Most Popular

Email Newsletter