Gore Street Energy Storage Fund PLC Net Asset Value(s) (2516U)
March 28 2019 - 2:02AM
UK Regulatory
TIDMGSF
RNS Number : 2516U
Gore Street Energy Storage Fund PLC
28 March 2019
28 March 2019
Gore Street Energy Storage Fund plc
("Gore Street" or the "Company")
Quarterly Net Asset Value & Business Update
Gore Street (ticker: GSF), London's first listed fund for
investing in income producing energy storage projects in the UK and
internationally, is pleased to announce its quarterly net asset
value ("NAV") update. As at 31 December 2018, the unaudited
estimated NAV per ordinary share was 92.9 pence.
Energy storage is a new market and as such it is undergoing
continued and transformative growth in the UK and globally. The
fundamental growth drivers remain fossil and nuclear powerplant
closures and the steady increase in intermittent renewable energy
capacity which affect grid stability and electricity price
stability, both issues that storage projects are uniquely
positioned to address. As a result, energy storage is a key part of
government energy policy as it helps to deliver the low-carbon
electricity sector that is the stated goal of the UK, the EU and
many other nations and areas. The appetite for energy storage
assets is therefore anticipated to increase in these markets as the
levers that drive their growth further develop. Gore Street remains
ideally positioned to capitalise on this anticipated increase in
demand for energy storage assets.
Gore Street Capital, Gore Street's Investment Advisor, has
witnessed the market react to the need for storage with increased
permitting and installation of storage projects in the UK that are
accessing the frequency response and capacity markets. In November
2018, we commented on the news that the UK capacity market had been
suspended following an EU decision that the process for obtaining
EU State Aid clearance was flawed. These two events have led to a
small fall in frequency response prices and temporary loss of
capacity payments. The UK and the EU are working to address the
procedural issues and reinstate the capacity market.
In light of these developments, Gore Street is taking a
conservative view of the level and sources of revenue available to
energy storage projects. It is this conservative forecast that
results in the NAV adjustment. The Investment Advisor remains
confident that the UK still presents compelling investment
opportunities, and the present operational portfolio is generating
strong positive cash flows, whilst the asset in construction
remains on track for commissioning as previously advised.
As a leader in this new and growing market, Gore Street has an
extensive pipeline of UK and European storage projects, several of
which are in exclusivity or advanced negotiations; over the last
few months that pipeline of opportunities has increased materially.
However, Gore Street has been focused on preserving its rigorous
investment discipline to safeguard target returns to shareholders
at the levels indicated in the IPO prospectus and has therefore
been selective in the projects it invest in. Nevertheless, the
Company expects to announce several new investments in the near
term.
In addition to the Company's significant UK investment pipeline,
the opportunities outside the UK have continued to grow
considerably and there are immediate and attractive opportunities
available at present market prices. Gore Street's advanced pipeline
encompasses projects across Belgium, Germany and the Ireland; a
point of differentiation for the fund.
The Legal Entity Identifier of the Company is
213800GPUNVGG81G4O21.
For further information:
Gore Street Capital Limited
Alex O'Cinneide Tel: +44 (0) 20 3826 0290
Stockdale Securities Limited
Daniel Harris / Rose Ramsden (Corporate Finance) Tel: +44 (0) 20 7601 6000
Henry Willcocks / Fiona Conroy (Corporate Broking)
Media enquiries:
Buchanan
Charles Ryland / Steph Watson / Henry Wilson Tel: +44 (0) 20 7466 5000
Email: Gorestreet@buchanan.uk.com
JTC (U.K.) Limited, Company Secretary Tel: +44 (0) 20 7409 0181
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 a significant 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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