REG - Gore Street Energy - Significant Acquisition and Construction Milestone

Gore Street Energy Storage FundAnnouncement

25/01/2023 07:00

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RNS Number : 7539N  Gore Street Energy Storage Fund PLC  25 January 2023

25 January 2023

Gore Street Energy Storage Fund Plc

('GSF' or the 'Company')

 

Significant Acquisition and Construction Milestone Achieved

75 MW / 150 MWh Texas Asset, the Largest Acquisition to Date in the US

Gore Street Energy Storage Fund plc (ticker: GSF), London's first listed
energy storage fund supporting the transition to low carbon power in the UK
and internationally, is pleased to announce that it has agreed to acquire a 75
MW / 150 MWh energy storage project (the "Project") located in Texas, United
States. Following this acquisition, GSF's internationally diverse
portfolio will consist of 26 projects with a total capacity of 973.2 MW in
operation and construction across the UK, Ireland, Germany and the United
States.

The project will be the Company's largest acquisition in the ERCOT Market to
date and brings the Company's total US portfolio to 144.7 MW. The
pre-construction project has secured all land rights, grid connections and
planning consents and is expected to be of two-hour duration. The grid
connection is scheduled for H1 2024, with commercial operations to commence
shortly thereafter.

Gore Street's investment manager, Gore Street Capital Limited (the "Investment
Manager"), estimates the Project will have an unlevered IRR in the range of
10-12%, in line with GSF's target. Total expenditure on the project to
commission is expected to be a minimum of £50m.

North America remains a key target for the Company. The current regulatory
landscape is becoming more favourable, with the Inflation Reduction Act
introducing policies supporting energy storage deployment. The Electric
Reliability Council of Texas (ERCOT) is the grid operator for most of Texas;
GSF's operational portfolio in ERCOT balances the grid by providing ancillary
services and derives further revenue through participation in the wholesale
market. ERCOT continues to be a lucrative market due to the high penetration
of renewables, creating a unique opportunity for battery storage. ERCOT has
seen ancillary prices clear to almost $ 3,000 / MW / hr. in 2022.

 

Construction Milestone Achieved

The non-contestable works, including grid transformers dedicated to the Stony
project, were energised on the 23rd of January, on schedule for its expected
operational start next quarter.

 

Alex O'Cinneide, CEO of Gore Street Capital Limited, the Company's investment
manager, commented:

"We are pleased to announce this acquisition in the high-growth market of
ERCOT, US, adding to the Company's existing international portfolio of energy
storage assets. This is a continuation of our diversification strategy of
reducing single-point risk while gaining exposure to high-growth markets that
demonstrate favourable characteristics similar to the GB and Irish markets. We
see this unique geographical diversification in energy storage as increasingly
beneficial to shareholders during the current political and economic climate.

"I look forward to sharing our progress over the next 12 months as 187 MW of
additional operational capacity is scheduled to become operational in GB. The
assets will provide critical services to the National Grid and form a
necessary part of the infrastructure required for the continued deployment of
renewable energy generation whilst further increasing the diversification of
the Company's revenue streams."

 

For further information:

 Gore Street Capital Limited
 Alex O'Cinneide / Paula Travesso                                  Tel: +44 (0) 20 3826 0290

 Shore Capital (Joint Corporate Broker)
 Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory)  Tel: +44 (0) 20 7 408 4090

  Fiona Conroy (Corporate Broking)

 

 J. P. Morgan Cazenove (Joint Corporate Broker)
 William Simmonds / Jérémie Birnbaum (Corporate Finance)    Tel: +44 (0) 20 7742 4000

 

Buchanan (Media enquiries)

 Charles Ryland / Henry Wilson / George Beale  Tel: +44 (0) 20 7466 5000
                                               Email: Gorestreet@buchanan.uk.com

 

Notes to Editors

About Gore Street Energy Storage Fund plc

Gore Street is London's first listed energy storage fund and seeks to provide
Shareholders with an opportunity to invest in a diversified portfolio of
utility-scale energy storage projects. In addition to growth through
exploiting its considerable pipeline, the Company aims to deliver consistent
and robust dividend yield as income distributions to its Shareholders.

 

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