Gore Street Capital

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 

Exciting News! Gore Street Capital has implemented ACCURE’s AI-based battery analytics platform to secure enhanced insurance conditions at two of their UK energy storage sites. By leveraging ACCURE’s technology, Gore Street Capital has received an innovative new risk-management policy while boosting safety and operational excellence. https://hubs.ly/Q02vtFTz0 💻 If insurance is top-of-mind, don't miss our upcoming webinar. Join insurance and energy storage experts from Gore Street Capital, PIB Insurance Brokers, HDI Global SE and ACCURE as we unravel the complexities of insuring BESS and reveal how policies can be optimized with a data-driven approach. https://hubs.ly/Q02vtFL80 #BESS #insurance #energyinsurance #energystorage #energy

Thanks to Quentin Scrimshire and Modo Energy for inviting our CEO Dr Alex O'Cinneide to the #Transmission podcast during his recent visit to #Texas to check on the progress of the 75 MW Dogfish construction project. Over the conversation, Alex shares the story of Gore Street Capital’s origins and his own journey into #energystorage, as well as insights into the company’s #diversification strategy and growing experience from six international markets to date. 2024 has proved to be a challenging time for the #investment trust space, with high interest rates and market saturation in #GreatBritain having a particular impact. As Alex explains, Gore Street Capital has positioned itself across multiple markets to limit the impact of these market conditions and retain a stable revenue profile for investors. Looking forward Alex outlines the company’s future activities including in #Japan where Gore Street Capital is a joint manager of the country’s first dedicated energy storage fund alongside ITOCHU Corporation. Click here to watch the full episode: https://lnkd.in/eWxz7Hik #EnergyMarkets #ModoEnergy #decarbonisation #renewables #Ireland #California #Germany 

Many thanks to Solar Media Limited for inviting Thomas Gilles and Carlos Molina Martin from our commercial team to speak at #StorageSummit in #Texas last month. As specialists for the ERCOT and California ISO grids in Texas and #California, respectively, Thomas and Carlos were in good company discussing the potential of both markets alongside representatives from across the US #energystorage sector.    As the investment manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), engaging with industry to build knowledge while meeting existing and potential partners across the #US is an important part of how we support our client. We have managed operational and construction assets across Texas and California since early 2022 and expect to bring online 275 MW across the Big Rock asset in California and Dogfish in Texas by the end of 2024. This will take GSF’s US assets to more than 50% of total operational capacity compared to c.30% in GB on a MWh basis.    This leap forward in operational capacity illustrates the importance of the US portfolio for the future and we look forward to further opportunities to engage with industry across the pond.    #diversification #batterystorage #international #collaboration    Images provided by Solar Media Ltd

We are very proud to announce that GSC has secured additional capacity for our client Gore Street Energy Storage Fund, the internationally diversified #energystorage fund, in the highly lucrative Irish market.    Thanks to the long-term agreement struck with strategic partner Low Carbon back in 2019, GSF has acquired the remaining 49% in two of its existing Irish projects – Porterstown, a 90 MW asset of which 30 MW is already operational, and Kilmannock, a 120 MW construction asset – alongside Project Mucklagh, a 75 MW asset in the Republic of Ireland scheduled for energisation in 2028.     This news takes GSF’s portfolio to 1.248 GW across 28 operational and construction assets in Great Britain, #Ireland, #Germany, #Texas and #California.    The total consideration for the three Irish deals was settled via the issuance of 9.7m new ordinary shares in the capital of GSF, issued at 111.0 pence per ordinary share, and a cash consideration. At a challenging time for capital markets, this innovative funding structure demonstrates our ability to continue growing the fund’s assets through long-term relationships with strategic partners like Low Carbon.    The acquisition takes GSF’s Irish asset base to 385 MW with the remaining capacity from Porterstown due online later this year, followed by Kilmannock phases 1 and 2 in 2025 and 2026, respectively. These assets, along with Mucklagh in 2028, will increase our exposure to the high-value Irish market, which delivered average estimated revenues of £25.8/MW/hr in the December-end quarter. With Great Britain providing an estimated average of £6.1/MW/hr over the same three-month period, increasing access to revenues from a range of international and uncorrelated markets is a key strategy for ensuring sustainable returns in the future.      Irish portfolio performance is currently driven by #ancillaryservices, which are designed to integrate the rapid #decarbonisation of the all-island grid system. GSF’s assets will continue to deliver valuable support to grid operators EirGrid Group and #SONI by balancing the grid as more renewable generation comes online.     As the Investment Manager of GSF, we are also in regular contact with industry partners and regulators to ensure the market develops positively for #energystorage and more revenues can be accessed in the years to come.    We look forward to continuing to build on our long-standing relationship with Low Carbon, which retains its 49% stake in the 100 MW combined Mullavilly and Drumkee projects in Northern Ireland, alongside its 49% stake in Mucklagh. Together we are all motivated to achieve success and maintain the Company’s position as a leader in Ireland’s energy storage market.    You can read GSF’s full announcement regarding the increase to Irish capacity here: https://lnkd.in/eFVhavxb     #gridservices #internationalfinance #diversification #renewables #investment #Ireland 

To mark United Nations #WorldWaterDay, we would like to celebrate the work done by UNICEF and its local partners to deliver #cleanwater to communities in Mozambique. With personal contributions from the GSC team and a donation from our client Gore Street Energy Storage Fund (LSE: GSF), the internationally diversified #energystorage fund, UNICEF and its partners have been able to complete a solar-powered water supply system for the people of Matharya in the eastern Nampula province.     Work has been underway in the rural location since August 2022 and, despite some delays caused by concurrent cholera and cyclone emergencies, the system was completed in December 2023 and handed over to local people. It is now able to provide reliable and safe water supplies to over 1,400 community members, as well as 754 students and 11 teachers.     Access to safe and secure water in rural Mozambique is a severe challenge for local people, with some children previously having to travel three hours a day to fetch water for their classmates. Thanks to the new installation, water is now provided at their school with additional training provided to ensure the system is sustainable for the future.     We would like to not only commend the UNICEF team for managing the community engagement, procurement and technical support needed to deliver the project, but for providing #humanitarian activities during the worst cholera outbreak in four years followed by the longest cyclone ever recorded.      The need for effective water, sanitation and hygiene (WASH) systems during these crises is crucial, which is why it’s so important that the water supply system now in place has been designed to be resilient against the climate-related challenges of the future.  This will allow the system to deliver the community’s daily water needs for years to come.    The effects of #climatechange can be felt most acutely in its impact on water ranging from worsening floods, rising sea levels, shrinking ice fields and droughts. As the UN has pointed out, sustainable water management helps society build resilience, protect health and ultimately save lives. It can also protect ecosystems and, though solar-powered solutions like the system deployed in this project, reduce carbon emissions from water and sanitation transportation and treatment.     Work by UNICEF and others to deploy these systems is, therefore, vital and we are proud to highlight its work: www.worldwaterday.org    #sustainability #cleanwaterforall #ForEveryChild #SDGs #watercrisis #globalhealth

Within the wider context of #investmenttrusts over recent months, we are happy to report strong results from the December-end quarter for our client Gore Street Energy Storage Fund (LSE: GSF).    As the UK’s internationally diversified energy storage fund, GSF’s aggregate operational portfolio continued to generate sustainable and diversified revenues from across four uncorrelated energy markets. These activities delivered an estimated average of £15.1/MW/hr during the Company’s third financial quarter (ending 31-December 2023), excluding the 79.9 MW Stony asset energised during the period.    The #northernireland portfolio was particularly strong, providing record estimated revenues of £31.4/MW/hr over the latest quarter. This maintained healthy returns during seasonal variations within the portfolio while showcasing the role of #energystorage as an asset class to deliver value for investors by integrating #renewableenergy generation into the all-island system.     Post-period the estimated average figure for the entire portfolio rose to £16.1 per MW/hr in January and February 2024, demonstrating the resilience of the Company’s international presence.    The performance is well above what could be achieved by a single market portfolio, particularly in #greatbritain (GB) where we’ve seen market conditions decline for #batterystorage assets. While GB revenue curves have driven a small reduction in NAV, international operations have illustrated the value in the resilience of the Company’s consolidated portfolio and strength of our active strategy as GSF’s Investment Manager.     The consistent revenues achieved by our multi-jurisdictional approach over the financial year have been made possible by correct understanding of the #energymarkets in which we operate, coupled with the appropriate investment and financial rigour. GSF maintains a strong balance sheet, utilising the correct level of debt, and remains fully funded as we build out new projects in the next 12 months to take operational capacity to over 800 MW.    As we add some of the biggest projects to date to GSF’s operational portfolio, including the 200 MW Big Rock asset in #california, our exposure to GB will fall as we are able to pursue more attractive returns within a broader pool of revenue streams. This will ensure GSF continues to lead the energy storage market, and we look forward to providing more positive updates in the coming months.    You can read GSF’s full December-end results here: https://lnkd.in/eg5nrFTe     #diversification #internationalbusiness #energytransition #decarbonisation 

I’m very excited to be joining colleagues from across the #energystorage industry to discuss the importance of #diversification for the future of the sector.   Gore Street Capital adopted diversification as a key part of its strategy early on, which has led us to managing around 1.2 GW of battery energy storage projects across five markets to date.   The recent downturn in GB’s market has illustrated how important this strategy is for asset owners, and I’m looking forward to sharing what we have learned with the audience at #storagesummit.   The session will take place at 10:25 on day one of the event, I hope to see you there.