Gore Street Energy Storage Share Discussion Threads

[scruff1] 06/2/2023 09:42

Strange that on a day when the Telegraph reprts that National Grid is about to bring coal fired power stations out of mothballs because there is no wind an battery storage scheme drops in value.

If the advn trade chart can be believed (which it really cant I know) hardly anyone has ever bought this stock! It has become disappointing

[cwa1] 25/1/2023 07:19

Blimey, that's going to be quick :-)

5 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."

[route1] 16/1/2023 12:13

Many many thanks for that excellent link, which will provide me with invaluable data for all my holdings present and future.

[petewy] 14/1/2023 12:26

try common sense route1

[gateside] 14/1/2023 08:43

Or look at Investor section of Gore Street's website

[scruff1] 14/1/2023 08:30

Even the 'financials' section above

[krowelet] 14/1/2023 08:14

See H.L. brokers you don't need to be a client, click on shares and key in the company ticker lots of info for each company including dividends.

[eggbaconandbubble] 14/1/2023 07:50

Route - see dividenddata.co.uk

[gateside] 14/1/2023 06:32

Dividends paid QuarterlyCurrently 7p a year

[route1] 14/1/2023 03:41

I would be grateful if someone could confirm how GSF pays its Dividends, quarterly or half yearly?Thanks.

[mirandaj] 03/1/2023 10:16

eggbaconandbubble,

Apologies but it is subscription only but I saw it using google.

[eggbaconandbubble] 03/1/2023 08:39

Miranda, Would you be kind enough and post the full article?

[eggbaconandbubble] 28/12/2022 19:25

xd tomorrow. 2p.

[davebowler] 16/12/2022 09:33

Liberum-
Gore Street Energy Storage

6.5% interim NAV TR

Mkt Cap £531m | Share price 110.2p | Prem/(disc) -0.8% | Div yield 6.4%

Event

Gore Street Energy Storage's NAV per share increased by 3.7% to 111.1p in the interim period to 30 September 2022, reflecting a 6.5% NAV total return. The NAV of portfolio SPVs increased by £0.9m in the period, net of £53.1m in acquisitions and capex. GSF received £26m in distributions from SPVs in the period. Near-term inflation assumptions were updated in the period and a 2% inflation rate is assumed over the long term across GSF's markets. The weighted average discount rate increased by 100bps to 9.3%. The annual dividend target is 7% of NAV, with a minimum 7p target.

GSF's portfolio comprises 25 projects located in the UK, Ireland, Germany, and the US. The 898MW (including the 200MW post-period acquisition) portfolio currently includes 292MW of operational capacity.


GSF's revenues are primarily derived from ancillary services. Operating revenues were £20.2m in the period, with a portfolio average hourly revenue per MWh of £16.50, ranging from £21.60 in the UK to £10.50 in the US.


Construction and pipeline update

At the period-end, GSF's total pipeline was 1.5GW (2.6GWh), with 75MW (150MWh) in exclusivity. Cash and short-term investments held at the period-end totalled £303m.

With respect to construction, GSF notes that commercial operation for GB-basedStony (79.9MW) and
Enderby (57.0MW) remains forecast for Q2 and Q4 2023. Grid connection works at Ferrymuir (50MW) have been delayed, with commercial operation now expected in Q2 2023. The full construction summary is shown below:


Liberum view

GSF is focused on shorter-duration batteries, which are best suited to ancillary services. More than 95% of revenues are attributable to shorter-duration balancing services. This remains the key focus, which distinguishes the strategy from the peer group, which is increasingly focused on longer-duration batteries that are more suited to trading. Frequency response revenues should remain high while commissioning remains a wider challenge.

[waterloo01] 16/12/2022 09:32

Fair point bountyhunter and and noted NAV premium has almost gone. Good to get confirmation, by lack of mention, that they escape the Govt energy taxes.

I hold for the divi as well.

[cocopah] 16/12/2022 09:18

#waterloo01 yes I saw that and hope that they are not thinking of selling out. Of course we would get a premium but I’m keen to maintain the flow of dividends. As far as the results go, it’s impossible to interpret them fully without the full financial results (which of course will be available soon). We should be in line for a 7.5p dividend over the next 12 months, now the NAV is firmly above £1.07. 👍🏻

[bountyhunter] 16/12/2022 09:07

It's gone up, the market is happy enough.
Further to go imv but to go up on a day when the FTSE is in the red is good enough for me right now.

[waterloo01] 16/12/2022 09:04

Not sure what 'the market' doesn't like? Any ideas?

[waterloo01] 16/12/2022 07:16

Good set of results. Interesting change re manager should an offer for the company emerge (hope it doesn't)

[fordtin] 08/12/2022 17:07

"Utility-scale battery storage capacity [will increase] in the United States over the next three years, reaching 30.0 gigawatts (GW) by the end of 2025."

[scruff1] 28/11/2022 22:35

eggy
Showing your age. I watched it as a 12 year old on a black and white telly in France on a school trip. We often mention in the pub that we are like D Day vets - not many left :-(
Im sure we will not have to worry about the final - our ever forward planning Tory Govt has spent £28m of what ever is left in the kitty to advise we dimwits not to fill our kettles, keep the fridge door shut over night and wear shoes instead of flip flops.

yump
Storage has to be a major growth aspect of renewable which as you say is largely in its infancy though I was lucky as a youngster to be taken on an underground visit of Dinorwic in its very early stages when it was just a cavern and then again many years later when it was completed. I think its fantastic in concept and engineering and as far as I am aware the first sort of transferable energy type storage. Its always been immensley important to the national grid and for profitable the company running it.
Maybe as you say Hybrid schemes will be the way it goes. I cant help feeling that battery systems like GSFs have inherent weaknesses which I am sure they are aware of I just hope they adapt as necessary and stay ahead of the game