Gresham House Energy Sto... Share Discussion Threads

[cruelladeville] 01/9/2022 09:46

Only in your dreams?

[jonwig] 01/9/2022 09:44

Trust Truss?

[nickrl] 01/9/2022 08:38

jonwig for sure its good for GRID as long government don't decide to windfall tax the whole energy supply ecosystem to fund the support they are going to have to provide to consumers.

So best keeping quite about it!

[jonwig] 01/9/2022 05:44

FT today:

Electricity storage battery groups set for windfall amid market volatility.

Operators that can store excess power supply are set for an important role as winter approaches.


The operators of electricity storage batteries are emerging as rare winners from the UK energy crisis, as the need to prepare for the threat of blackouts this winter intensifies and market volatility increases.

The batteries help the electricity grid function, providing more energy when demand outstrips supply and storing excess power. Gresham House and Pivot Power are among the companies benefiting from rising volatility in the electricity market as they sell the power to the grid when prices are high and charge up the batteries when they are lower.

“There’s a huge advantage of being active now,” said James Bustin, investment manager at Gresham House, the UK’s largest battery storage operator. “As a result of the energy crisis, we’ve had volatility reach record levels, and batteries make money off of the highs and lows.”
More:

[igoe104] 29/8/2022 19:43

No announcement has been made yet for the next dividend. But they should be one soon.

[willywonka12] 26/8/2022 05:11

Can't wait

[notbitcoin] 25/8/2022 14:24

Divi decuraltion was yesterday but not heard anything.
Ex divi 1 September

[notbitcoin] 22/8/2022 11:41

Ex divi 24.08

[pavey ark] 17/8/2022 19:06

Interesting piece in recent Which magazine regarding EV battery deterioration.......it looks like car batteries deteriorate at 1% to 2% per year.This is my experience with my almost two year old EV......very little range loss.I know I'm not comparing apples with apples and battery costs are only c.25 % of GRID'S installation costs but they are writing the costs over 7 years so if they last longer there is an obvious cost benefit.I know that wind turbine operators did get a lift when the life expectancy of the turbines was increased.

[tag57] 12/8/2022 19:51

Marktime, looking at Dividend max the next divi is usually paid in September with just the 2021 paid early for some reason

[marktime1231] 12/8/2022 19:03

Actually I am surprised we haven't had the Q2 dividend notice already, and was hoping for it to be paid promptly, no reason to slip in to September. The recent listing proposal said expect it in August.

[notbitcoin] 10/8/2022 07:47

I Thought a bit of useful info

[frederickbloggs] 06/8/2022 13:14

Fully understood and agreed. Bought in at 103p and very glad too. Also bought a smaller stake in HEIT at IPO because GRID was accumulating it's premium to NAV. I won't pay a premium to NAV. HEIT is a smaller and younger company, of course. It is very tempting to think about trimming GRID share holding but it's not easy to find investments with as promising a future at the moment. We still haven't scratched the surface yet given the planned wind turbine installed capacity. I think energy storage is where wind power was a decade or more ago.For diversity and income I hold a wedge of SSE too mostly on account of the Dogger Bank project.

[nickrl] 06/8/2022 08:14

Frederick my take is its getting ahead of itself on fundamentals but that means nothing if a stock becomes hot as irrational exuberance takes over. Anyhow GRIDs primary advantage currently is they have assets to trade with on the daily electricity market (Wholesale, BM or dynamic services)so are earning real cash at the operating company level unlike HEIT which is still months off having even its first operational asset. They also acquiring vast capacity of assets and will become the dominant player in the BESS market but its coming at the expense of an ever expanding share register so im wary they will be raising the dividend for a while yet but if you got in at the ground floor you've no need to worry about that.

[frederickbloggs] 06/8/2022 07:11

Closed at neatly 170p. Is it just "flavour of the month" here? Or does the market see something more significant? I did say to Mrs Bloggs a couple of months back that I can see 500p here and 1000p within a decade.

[nickrl] 05/8/2022 15:56

Given the vast wind constraints payments being made are largely for Scottish onshore wind due to the daft policy which forces connection onto the grid whether there is capacity or not you would think the SNP would be right behind this one its an absolute no brainer. Anyhow they don't hence the opportunity for the likes of GRID.

[frederickbloggs] 05/8/2022 12:39

Yet it's the same intellectual pygmies we have today who allowed Centrica to shutdown Rough gas storage. Now there's a massive panic to bring it back into use.The idiots we have in charge wouldn't recognise a vital investment in national energy security if Coire Glas dropped on their head. Disgraceful really when you think about it. Nobody thinks beyond the next election.

[nickrl] 05/8/2022 11:50

llef that site can deliver 20GWh GRID can barely muster 0.5GWh currently so at c 750k/MW that will need best part of 14.5B investment to match it so nearly 7 times the capital cost. Of course key advantage is it could be built out in a couple of years as long as materials for batteries are available. As Frederick says we really need to invest in Coire Glas on the same basis we just built Dinorwic 40 years ago for national strategic interest.

GRID share price going too well imv GSF/HEIT are both lagging behind by a widening margin. The main difference is they don't have so much capacity GSF or have none online yet HEIT but when the latter does this will inject more competition in the daily auctions and probably drive down the DC price. So whilst GRID are capitalising at the moment my view is this can't be taken as long term level on which to judge income to cover dividend so an increase is a way off still.

[marktime1231] 05/8/2022 11:02

And Iberdrola have recently gone live on an eight year E1.5B project to develop the 1,158MW Tamega complex in northern Portugal. It is run-of-river + pumped hydro really but they are calling it a gigabattery, based on the idea that the pumped hydro will store surplus energy from associated wind and solar farms.

[frederickbloggs] 05/8/2022 10:34

Absolutely agree with you on Coire Glas. But I reckon it won't get the investment. Lifetime of such infrastructure is a 100 years or more which makes it a bargain really. But nobody gives a monkeys about that kind of timescale. Only the Victorians made infrastructure investment like that.

[marktime1231] 05/8/2022 09:50

Well maybe they are going for another share issue soon. And why not, take advantage of the premium.

The issue of 103 million shares in May at 145p raised £150M. The smallprint at the bottom of the prospectus reminded me that the board had approval and intended to issue a total of 400 million new shares in the year ahead.

The prospectus also said they had a new strategy to acquire earlier stage shovel-ready ventures, having previously concentrated on near-live BESS, and this opened up a huge new pipeline including +4GW in the UK where they were in exclusive negotiations. This increases the lag between expense and income, but greatly enhances the NAV growth potential in years to come.

The limit on how many shares can be issued now is perhaps the ability to continue to cover the promised 7p dividend with income. Or while expanding aggressively do we not worry too much where the cash distribution comes from? The last quarterly report indicated revenue of 1.82p versus a 1.75p dividend. Since then maybe another 40MW site has gone live, but there are 103 million more shares to service.

Q2 dividend coverage and Q3 outlook will be interesting to read about then, when we get the next quarterly report, next week maybe? But even if the coverage isn't 100% I hope GRID don't hold back, raise capital and secure the opportunities available.

[marktime1231] 04/8/2022 11:19

GRID share price at 164p starting to look hot in anticipation of the imminent Q2 NAV report etc. Based on a firm declaration we can be pretty sure the dividend is being held at 7p this year so a 1.75p quartlery to look forward to, and we have already been guided to a NAV uplift to around 145p.

A 13% premium cannot be ignored, will they want to tap the market again, surely not so soon?

In which case a NAV beat and signal that it is due further strong advances in the months ahead? Or a teaser of handsome dividend progression next year?

[frederickbloggs] 02/8/2022 14:21

Flaws in the plan for hydrogen in the national gas distribution network -1 The carbon steel used in the gas terminals, high pressure gas network and the associated machines was never specified to resist hydrogen embrittlement.2 None of the gas turbines used across the transmission network can run on pure hydrogen, at the moment. Though Siemens, GE, Mitsubishi etc... are trying.3 The centrifugal compressors (turbine or motor driven) can run on hydrogen in theory but the compressor discharge pressure is proportional to the gas density. So is far, far lower compressing hydrogen than it is methane using any given machine. You need more compressor stages to achieve the required discharge pressure on hydrogen than you do with methane.So, apart from completely redesigning and rebuilding the UK's gas distribution network from start to end. Yeah, there's no problem running the system on hydrogen........