UK’s Gresham House sees ‘strong growth in earnings’ from high ancillary service prices

By Lena Dias Martins
LinkedIn
Twitter
Reddit
Facebook
Email

Delays in the growth of Britain’s battery energy storage system (BESS) sector helped boost Gresham House Energy Storage Fund’s (GRID) portfolio performance, resulting in a “strong growth in earnings” in 2022.

In its financial earnings results ending 31 December 2022, London Stock Exchange-listed investment fund GRID disclosed that the earnings before interest, taxes, depreciation, and amortisation (EBITDA) for its underlying portfolio grew by 23.2% to £48.8 million (US$60.67 million).

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

It said that the strong performance was as a result of undersupply of BESS capacity in key frequency response services, which kept prices high. 

The company also experienced an increase in its net asset value (NAV) to 155.51p (US$1.93) per share – a 33.1% increase from the 31 December 2021 NAV valued at 116.86p per share.

Gresham House Energy Storage Fund reported that the greatest challenged faced by the construction activities within its investment portfolio were longer lead times and complications relating to obtaining grid connections for projects.

Despite the revenue increase in 2022, GRID noted that it is yet to experience potential cost decreases – in relation to insurance for example – as forecast.

“In 2022 GRID further built on its strong track record and delivered significant growth in earnings, operational capacity and NAV per share, while maintaining a fully covered dividend as projects became operational. Following GRID’s strong trajectory in 2022, the Company has set its ambitions higher going into 2023,” said John Leggate CBE, Chair of Gresham House Energy Storage Fund plc.

“We are exceptionally well-positioned to capitalise on the exciting battery energy storage opportunities ahead of us in the UK and our targeted international markets.”

To read the full version of this story, visit Solar Power Portal.

Read Next

May 20, 2025
Battery storage developers and owner-operators Eku, Alcemi, Field and Energy Optimisation Solutions (EOS) make UK project progress with finance and planning approvals.
May 19, 2025
Flow battery energy storage manufacturer ESS Inc. could achieve profitability “in the next few years,” if its new product is a success, the company’s CFO has said.
May 16, 2025
The battery storage arm of Canadian Solar expects to make between 7GWh and 9GWh of shipments this year, with the final figure dependent on trade policy developments.
May 16, 2025
Developer Elgin Energy has secured grid connection approval from AEMO for a 150MW solar-plus-storage site in Victoria.
Sponsored
May 14, 2025
The energy storage industry needs to ensure safety and performance, and CSA C800-2025 is the standard to fulfil that need.

Most Popular

Email Newsletter