Great result by my colleagues in Gore Street Capital! A high-value long-term and stackable contract. Significantly increases our contracted revenue whilst unlike tolling agreements doesn't give our assets away to others to manage; our in-house teams are therefore able to continue to capture other revenue opportunities. Also the start of a great partnership with Goldman Sachs. We are looking forward to a strong final quarter as the portfolio delivers against the targets we laid out to our investors. #energystorage #energytransition #worldleading
As the Investment Manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), we are pleased to share that the Fund has secured a Resource Adequacy contract with J. Aron & Company LLC, a subsidiary of Goldman Sachs for the Company’s California asset, Big Rock. This stackable fixed price contract, worth over $14 million annually, marks a substantial achievement for the largest asset in the Fund’s portfolio. Scheduled to commence in the summer of 2025, this contract is fully stackable, allowing for concurrent revenue streams such as wholesale trading and ancillary services. It is expected to account for up to 40% of the total expected revenue of the asset over the contract life. Due to the long-term fixed-price nature of the contract, it also supports securing project-level debt. The Resource Adequacy contract in California aims to ensure sufficient generation are available to meet the energy system’s supply requirements. The RA contract requires a minimum duration of 4 hours. Therefore, the Fund’s Big Rock asset will utilise 100 MW of RA deliverability. This long-term fixed-price stackable contract will significantly enhance the Fund’s total revenue generation whilst further diversifying revenue streams and providing further stability. It also supports the Fund’s long-term ability to continue distributing dividends to shareholders. You can find out more about the Resource Adequacy contract here: https://lnkd.in/eKTvEVnM #energytransition #batterystorage #finance #renewables #energystorage #climatechange