REG - Gresham House Energy - 1GWh milestone after augmentation of two projects

Gresham House Energy Storage FundAnnouncement

04/07/2024 07:00

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RNS Number : 0702V  Gresham House Energy Storage Fund  04 July 2024

4 July 2024

Gresham House Energy Storage Fund plc

("GRID" or the "Company")

 

1GWh milestone passed, following augmentation of two projects to 50MW/100MWh
each

 

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund
investing in utility-scale battery energy storage systems (BESS), is pleased
to announce that it has completed the augmentation of its Enderby and West
Didsbury projects, which are both now trading at their increased capacity.

 

This increases GRID's operational capacity to over 1GWh (1,030MWh), the first
battery storage business in the UK to have passed this milestone.

 

The augmentation of the Enderby (50MW) and West Didsbury (50MW) sites has
involved upgrading each from 1-hour to 2-hour duration, adding 100MWh of
additional operational capacity. Both sites had been designed for these
upgrades from inception.

 

This milestone marks the completion of the second and third augmentation
projects in line with the plan set out in GRID's latest annual report. So far,
in 2024, GRID has added 117MWh 1  to currently operational projects through
augmentation, taking the operational portfolio to 790MW/1030MWh. A further
220MWh will be added with the remaining four augmentation projects.

 

John Leggate CBE, Chair of Gresham House Energy Storage Fund plc, said:

 

"We are very pleased at reaching this strategically important milestone since
for the UK to meet its Net Zero targets, BESS needs to be at significant
scale. The Board has taken the decision to focus part of its capital
allocation on upgrading certain existing sites which it believes is an
efficient use of capital, derisks project execution and improves the
portfolio's revenue potential.

 

In addition, securing revenues through our recent tolling agreement with
Octopus Energy demonstrates the growing range of opportunities to deliver
returns from balancing supply and demand, while also reducing the volatility
of these revenues."

 

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc &
Managing Director of Gresham House New Energy, said:

 

"We're delighted to have exceeded 1GWh of operational assets, the first
battery storage business in the UK to hit this milestone. As well as a
memorable moment in GRID's growth, this marks the continued progress in the
UK's energy transition with batteries being connected to balance rapidly
rising renewable generation with demand.

 

"It is well documented that the UK BESS market is moving to a trading strategy
dominated environment. The upgrade of these two sites to 2-hour duration
enables these projects to capitalise on that trading opportunity."

 

For further information, please contact:

 

 Gresham House New Energy               +44 (0)20 3837 6270

 Ben Guest

 James Bustin

 Jefferies International Limited        +44 (0)20 7029 8000

 Stuart Klein

 Gaudi Le Roux

 Harry Randall

 KL Communications                      gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman                         +44 (0)20 3882 6644

 Charlotte Francis

 Effie Aye-Maung-Hider

 JTC (UK) Limited as Company Secretary  GHEnergyStorageCoSec@jtcgroup.com (mailto:GHEnergyStorageCoSec@jtcgroup.com)

                                      +44 (0)20 7409 0181
 Christopher Gibbons

About the Company and the Manager

 

Gresham House Energy Storage Fund plc seeks to provide investors with an
attractive and sustainable dividend over the long term by investing in a
diversified portfolio of utility-scale battery energy storage systems (known
as BESS) located in Great Britain and internationally. In addition, the
Company seeks to provide investors with the prospect of capital growth through
the re-investment of net cash generated in excess of the target dividend in
accordance with the Company's investment policy.

 

The Company targets an unlevered Net Asset Value total return of 8% per annum
and a levered Net Asset Value total return of 15% per annum, in each case
calculated net of the Company's costs and expenses.

 

Gresham House Asset Management is the FCA authorised operating business of
Gresham House Ltd, a specialist alternative asset manager. Gresham House is
committed to operating responsibly and sustainably, taking the long view in
delivering sustainable investment solutions.

 

http://www.greshamhouse.com/ (http://www.greshamhouse.com/)

 

Definition of utility-scale battery energy storage systems (BESS)

 

Utility-scale battery energy storage systems (BESS) are the enabling
infrastructure that will support the continued growth of renewable energy
sources such as wind and solar, essential to the UK's stated target to reduce
carbon emissions. They store excess energy generated by renewable energy
sources and then release that stored energy back into the grid during peak
hours when there is increased demand.

 1  The Arbroath augmentation had previously been communicated as an
additional 12.5MWh however 17.2MWh was eventually installed and is reflected
in this RNS.

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