Gore Street Capital

The closure of Britain’s only remaining coal-fired power plant tonight marks a pivotal step in decarbonising the UK’s energy system. According to the shadow Climate Change and Net Zero secretary, Claire Coutinho, this was attributed to the expanding offshore wind farm capacity. Increased renewable dependence requires a higher equivalent capacity compared to thermal generators due to the intermittency associated with generation. Battery energy storage assets ensure grid stability, which becomes increasingly important as renewable penetration increases.  https://lnkd.in/eNThyKau #energystorage #energytransition #greenergrid #decarbonisation #GB 

We are pleased to announce that Gore Street Capital has successfully completed a fundraising round for its second energy storage fund. This is Japan’s first fund dedicated to grid-scale #energystorage, and will be jointly managed by Gore Street Capital in partnership with the ITOCHU Corporation. The two firms were selected as the managers of the Tokyo Metropolitan Government’s energy creation and energy storage promotion fund following a competitive process held in 2023. The Fund will primarily focus on the #Kanto region to support the growing deployment of renewable energy assets. It will invest in projects during development and subsequently construct and operate the assets. The business case for energy storage in Japan currently relies on a low-risk, 20-year fixed-price contract through the decarbonisation auction. However, a merchant business model offers the potential for higher returns. With a proven track record in managing merchant-based batteries, Gore Street have achieved superior returns in balancing services and wholesale trading across several markets since 2017. In April 2024, Japan introduced new merchant balancing services, marking a shift toward a higher risk-reward model. The Fund is well positioned to deliver strong returns for investors by leveraging ITOCHU Corporation’s project pipeline and experience in the Japanese market, combined with Gore Street's expertise in global energy storage investment, construction, and monetisation. You can read more on the announcement here: https://lnkd.in/ewMTryU2 #japan #investment #finance #greenenergy #greenfinance #diversification #publicprivatepartnerships #decarbonisation #asiapacific #gridstability #renewables

In our latest blog, we detail Japan’s commitment to a green energy transition through supporting investment in battery energy storage systems (BESS). Japan’s market for BESS mirrors that of the Great Britain grid, with revenue available for wholesale trading, capacity market and grid balancing. Japan is in a growth stage with respect to battery energy storage, as illustrated by the launch of additional balancing services this year. This marks an attractive opportunity for energy storage funds. In December 2023, the Tokyo Metropolitan Government appointed Gore Street Capital, alongside ITOCHU, to manage Japan’s first fund dedicated to grid-scale energy storage systems.   You can read our full blog here: https://lnkd.in/e5dZBny5 #energystorage #diversification #renewables #japan #greentransition #climatechange

Dr Alex O'Cinneide, CEO of Gore Street Capital, participated as a panellist at the Infrastructure Investor London Summit 2024, held last Thursday. The panel discussed the challenges related to power generation and transmission, with a focus on the impact of deglobalisation, geopolitics, and the complexities surrounding grid connections. Additionally, the conversation explored whether renewable energy sources can meet the increasing demand and how investors can responsibly engage in alternative energy investments. #energytransition #energystorage #renewableenergy #environment

As the Investment Manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), we are pleased to share a quarterly unaudited NAV and dividend declaration for the three-month period to the end of June.   The Company is uniquely positioned across five uncorrelated markets in #GreatBritain, #Ireland, #Germany, #Texas and #California.  The Company maintains a #robust balance sheet with £66.1m in cash or cash equivalents as of 30 June 2024. As at the same date, the Company had drawn £56.4m, with additional debt headroom of £39.8m.  As disclosed in the FY23/24 annual report, the Investment Manager anticipates a $60-80 million cash inflow following the sale of Investment Tax Credits for the in-construction US assets. There are currently three assets in construction, Enderby, Big Rock and Dogfish with a combined capacity of 332 MW with energisation targeted over the next five months. Following energisation of these assets, we expect to manage a steady state portfolio able to meet its dividend targets from cash in line with investors’ expectations.  The Board has approved a dividend of 1.0 pence per Ordinary Share, in line with dividend policy.  We remain committed to our diversified approach to continue to deliver value for all stakeholders.  You can find out more about the portfolio’s performance and updates to GSF’s unaudited NAV as at 30 June 2024, here: https://lnkd.in/eM-XiZGb   #energytransition #batterystorage #finance #renewables #energystorage #climatechange

In our latest blog, we detail GSC’s active approach in diversifying revenue streams in the German market. This involved leveraging additional services and #algorithmictrading, as well as selecting a new Route-to-Market provider to enact a data-driven strategy offering wider access to wholesale trading and alternative revenue streams. This illustrates GSC’s active #management style, harnessing both the unique opportunities within the market and building on the existing expertise within the in-house technical teams. We see Europe as an attractive, high-growth market, supported by the European Parliament agreeing to place energy storage at the heart of a clean and stable electricity system. You can read our full blog here: https://lnkd.in/evMiPt78 #energystorage #Germany #diversification #renewables #europeanpolicy #greentransition #climatechange

As the Investment Manager of Gore Street Energy Storage Fund plc (LSE: GSF), London’s first internationally diversified #energystorage fund, we are pleased to present the Company’s latest #ESG & #Sustainability Report for the 2023/24 financial year. This latest report reflects a significant year of growth for GSF with a 45% increase in energised capacity to 421.4 MW. Sustainability reporting has, therefore, become even more critical for investors seeking enhanced transparency over the Fund’s social and environmental impacts. Key highlights include: - The portfolio managed by GSC on behalf of GSF has increased to 1.25 GW (FY2022/23: 1.17 GW), with 421.4 MW of energised capacity and 826.8 MW in the construction/pre-construction phases. - The operational fleet avoided 15,178 tCO2e and stored 26,232 MWh of renewable electricity. - The Company implemented innovative solutions to further advance its already high standards of Health & Safety, while continuing to support communities up and down the value chain. - The Company further aligned with the Task Force on Climate-Related Financial Disclosure (TCFD) recommendations by providing an update on its climate-related risks and opportunities and disclosing how these are integrated into management decisions and day-to-day operations. More information about GSF’s ESG performance, as well as its disclosure under the Sustainable Finance Disclosure Regulation (SFDR), can be found in the report, which is available here: https://lnkd.in/exv9HQ8Q   #environment #socialimpact #governance #tcfd #sfdr #energytransition #reporting #climaterisk #climatechange #financialreporting #disclosures #lowcarbonfuture #ESG

As the Investment Manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), we are pleased to share the audited annual #results for the year ended 31 March 2024.     Thanks to the consolidated operational portfolio spread across four uncorrelated markets—Great Britain, Ireland, Germany and Texas—total revenue generation increased to £41.4m (31 March 2023: £39.3m), driven by a consistent average revenue profile of £15.1/MW/hr maintained throughout the year.      Strong revenues from the Irish and Texas grid systems were able to drive this performance, with increasing #renewables penetration and #grid volatility creating improved opportunities for #battery #energystorage systems. This offset declining revenues in GB and a normalisation of power prices in #Germany following the volatility of the previous reporting period.      GSF’s ability to thrive despite challenging market dynamics showcases the strength of its uniquely diversified strategy, which utilises solutions of varying durations suited to the revenue streams available in each market.     The Company was also able to continue to follow its growth strategy through energisation of the 79.9 MW Stony and 49.9 MW Ferrymuir assets in GB, which are both now operational and generating revenue. Additional capacity was also added to the wider diversified portfolio, which now stands at c. 1.25 GW across five uncorrelated markets.     This was achieved through innovative transactions in which we, as the Investment Manager, negotiated contracts with strategic partners to include payment, in part, through share issuance at NAV. This allowed us to grow the Company’s portfolio to 385 MW in the lucrative Irish market, with a minimal cash consideration, through well-structured negotiations with @LowCarbon.     We were also able to raise gross proceeds of £15.8m from our long-term strategic partner Nidec Motor Corporation at a time when #renewableenergy #infrastructure #investmenttrusts across the sector are trading at discounts and, therefore, largely unable to access capital markets.     We are proud to have played a material role in the success of GSF over the last year to continue growing the fund within a challenging environment. With 332 MW of new energised capacity expected in the coming months, including the 200 MW Big Rock project in California, the Company is exceptionally well-positioned to continue capitalising on the opportunities both in GB and abroad to deliver continued value for all GSF stakeholders.    You can find out more about GSF’s performance over the 12-month period, including a breakdown of activity across each of the five markets in which the Company has assets, here: https://lnkd.in/e3jtZ2Ar    #energytransition #batterystorage #climatechange #diversification #greatbritain #europe #usa #grid #gridmodernization #decarbonisation       

As the Investment Manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), we have been operating #energystorage assets in the #US since March 2022 when we entered the ERCOT market in Texas, before later completing a transaction in California in early 2023. These acquisitions by the fund followed years of preliminary work driven by the fact that the US has been undergoing a boom in #renewables deployment for several years. Since August 2022 this market appeal has been reinforced by the #InflationReductionAct which continues to deliver #investment tax credits for standalone energy storage and other #renewableenergy solutions. This has led to incredible deployment of new wind and solar generation, as well as the energy storage systems that play a crucial role integrating this clean power. Despite its successes, the future of the legislation has become uncertain as we get closer to November’s presidential #election and a potential second term for former President Donald Trump. A return to a Republican administration would signal a shift in US energy #policy and has the potential to impact the work being done under the Inflation Reduction Act. In our latest blog, we take a look at what the Inflation Reduction Act has done so far, how a new Trump Presidency may seek to change its course, and why any action could face opposition from red states that have received considerable investment under the legislation. While we do not expect existing investments to be affected by any shift in direction, the key takeaway remains that the US is expected to continue to be a key market for renewable energy solutions like energy storage, no matter who is in the White House. The fundamentals of renewables deployment, diminishing thermal generation, falling technology costs and societal demand for #decarbonisation will continue to drive the #energytransition well into the future. We are confident that the enduring nature of this transition and the economic forces driving investment into clean power will continue. You can read our full blog here: https://lnkd.in/eR3V-V2s

As the Investment Manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), we are pleased to share a trading update for the fund covering the 12 months ended 31 March 2024. Amid a turbulent year for #renewable #infrastructure #investment trusts, with high interest rates and volatility across the sector, GSF increased revenue to £41.4 million over the period and achieved an estimated weighted average operational EBITDA margin of c.69%. With market saturation taking hold in GB, this reporting period has fully illustrated the value of GSF’s uniquely diversified strategy across geography, revenue streams and regulatory regimes. As reported consistently over the 12 months, the Company maintained a high consolidated estimated average revenue of £15.1 per MW/hr (c.£133,000 per MW/yr), with the international portfolio outperforming GB assets by a factor of 2.2x. This consistency was driven by strong performance across the year from the Irish and US operational assets, in particular, with increasing #renewables penetration and #grid #volatility creating improved opportunities for battery energy storage systems. The Company also grew its energised capacity by 45% by year-end following the successful energisation of Stony (79.9MW) and Ferrymuir (49.9MW) and was also able to increase its capacity in the highly lucrative Irish market. The ongoing growth of the Company’s operational portfolio, alongside the consistent average revenue achieved per MW, drove the Company's dividend cover upward. During the period, the Company also raised capital via both equity and debt, enabling continued focus on key portfolio objectives. The growth achieved over the last 12 months in operational capacity, estimated revenue, and EBITDA (£28.4 million) demonstrates the Company's continued positive trajectory even in the face of GB revenue headwinds. We are proud to have played a material role in the success of GSF over the last year, delivering innovative finance and engineering expertise to continue growing the fund within a challenging environment. As we look ahead to the continued buildout of the portfolio, including the 200 MW Big Rock project in California, we are exceptionally well-positioned to continue capitalising on the opportunities both in GB and abroad to deliver continued value for all GSF stakeholders. You can find out more about GSF’s performance over the 12-month period, including a breakdown of activity across each of the five markets in which the Company has assets, here: https://lnkd.in/erHNs8TT    #energytransition #batterystorage #finance #renewables #windpower #climatechange #diversification #energystorage #greatbritain #europe #usa #grid #gridmodernization #batterystorage #decarbonisation