Gore Street Energy Storage Fund PLC Significant Acquisition and Construction Milestone (7539N)
January 25 2023 - 1:00AM
UK Regulatory
TIDMGSF
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 GBP50m .
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 Tel: +44 (0) 20 7742
(Corporate Finance) 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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