TIDMGSF
RNS Number : 5031F
Gore Street Energy Storage Fund PLC
17 November 2020
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THE PUBLIC DOMAIN.
17 November 2020
Gore Street Energy Storage Fund plc
(the "Company" or "Gore Street")
Turnkey construction contract signed for 30MW Irish Project
Application submitted to increase the Republic of Ireland
portfolio capacity to up to 180MW
Gore Street, London's first listed energy storage fund
supporting the transition to low carbon power, has executed a
fixed-price[1], turnkey Engineering, Procurement and Construction
("EPC") contract and a long-term Operations and Maintenance
(O&M) contract, with Fluence, for the Company's 30MW
Porterstown project in the Republic of Ireland (the "Project" or
"Porterstown"). In addition, the Company has applied to increase
the total capacity of the Company's two assets in its Republic of
Ireland portfolio from the original 60MW to up to a total capacity
of 180MW.
Fluence is a leading global energy storage technology and
services provider. Formed in 2018 by AES Corporation and Siemens
AG, the company currently has a portfolio of 2,400 MW in storage
projects deployed or awarded in 24 countries worldwide.
Details of the EPC
Under the EPC and O&M contracts, Fluence has committed to
construct the project at a fixed price(1) by a specified completion
date, to provide for performance (including back to back stringent
DS3 services warranties), energy degradation and availability
warranties and to operate the projects for up to 15 years. The
combination of a fixed price(1) , stringent warranties backed by
liquidated damages and a guaranteed[2] completion date further
de-risks the Project. As a result of this strong progress towards
completion, the Investment Manager believes there is an opportunity
to potentially increase the valuation of the Project.
In-line with previous guidance, the Project is on track to be
commissioned in Q3 2021 as expected.
As outlined in our acquisition and update announcements in June
2019, the Porterstown 30MW project will benefit from the new
"Delivering a Secure Sustainable Electricity System" (DS3) program
and will generate revenue from the program for a full 6-year fixed
contract period. This project, alongside the other three assets
owned by the Company in Northern Ireland and the Republic of
Ireland, all benefit from competitive and valuable agreed DS3
revenue contracts.
Possible Grid Connection and Site Duration Extensions
In addition, Gore Street is pleased to announce that it has
applied for an extension to expand the grid connection of
Porterstown, which could see the capacity of the Project increase
substantially.
The Company is also pleased to disclose that the 30MW Kilmannock
project, has also applied for an extension to expand its grid
connection. Connection works at Kilmannock continue to progress,
but construction will most likely commence at a later date due to
Eirgrid's updated timeline on grid connectivity. Together, this
potential extension would increase the portfolio in ROI from 60MW
to up to 180MW.
Gore Street believes both Projects and its expected financial
return will benefit from the capacity extension.
Alex O'Cinneide, CEO of Gore Street Capital, the Company's
investment manager, commented:
"Gore Street is delighted to deliver this encouraging news and
looks forward to working with Fluence on the Porterstown project.
Securing this EPC contract is another major step forward for our
portfolio of Irish assets, and directly supports the energy
security ambitions on the island of Ireland, where energy storage
could have a considerable role to play given the fantastic
intermittent wind resources available. We are also delighted that
this project will contribute towards Ireland's climate changes
goals and creating a low carbon economy. The potential to further
increase the MW capacity of both Porterstown and Kilmannock, is an
exciting development for the Company, and points to the incredible
focus on asset optimization by the Gore Street team.
We are pleased to have built one of the largest portfolios of
its kind and we look forward to further updating shareholders on
the progress of our Irish assets as these projects continue to
develop."
The Legal Entity Identifier of the Company is
213800GPUNVGG81G4O21.
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso Tel: +44 (0) 20 3826 0290
Shore Capital (Sole Broker)
Anita Ghanekar / Darren Vickers / Hugo Masefield (Corporate Advisory) Tel: +44 (0) 20 7601 6128
Henry Willcocks / Fiona Conroy (Corporate Broking)
Media enquiries
Buchanan
Charles Ryland / Henry Wilson / George Beale Tel: +44 (0) 20 7466 5000
Email: Gorestreet@buchanan.uk.com
JTC (UK) 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.
The Company targets an annual dividend of 7.0% of NAV per
Ordinary Share in each financial year, subject to a minimum target
of 7.0 pence per Ordinary Share. Dividends are paid quarterly.
https://www.gsenergystoragefund.com
Porterstown Project
Gore Street acquired a 51% interest in Porterstown from Low
Carbon in 2019. GSF is funding all required capex via shareholder
loan and carrying a 10/8% interest rate. Once the shareholder loan
if fully paid, GSF will split the excess profit the 49% with the
developer. Low Carbon.
The project is located in Porterstown, County Kildare and has a
total installed capacity of 30.0 MW. Porterstown secured a 30MW DS3
Fixed-tariff Contracts through a competitive auction held in 2019.
The contract is a six-year contract commencing in Q3 2021.
The Project anticipate revenues from the "DS3" or "Delivery
Secure Sustainable Electricity System" Programme as well as the
Irish Capacity Remuneration Mechanism and wholesale revenues (the
latter, after the end of DS3 services).
About Fluence
Fluence, a Siemens and AES company, is the global market leader
in energy storage technology solutions and services, combining the
agility of a technology company with the expertise, vision and
financial backing of two well-established and respected industry
giants. Building on the pioneering work of AES Energy Storage and
Siemens energy storage, Fluence's goal is to create a more
sustainable future by transforming the way we power our world.
Providing design, delivery and integration, Fluence offers proven
energy storage technology solutions that address the diverse needs
and challenges of customers in a rapidly transforming energy
landscape. The company currently has 2.4 gigawatts of projects in
operation or awarded across 24 countries and territories worldwide.
Fluence topped the Navigant Research utility-scale energy storage
leaderboard in 2018 and was named one of Fast Company's Most
Innovative Companies in 2019.
To learn more about Fluence, please visit:
fluenceenergy.com.
[1] Subject to price adjustment based on client variations
[2] Fluence's failure to meet the completion date results in
additional liquidated damages
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