Gresham House Energy Sto... Share Discussion Threads

[cc2014] 16/1/2024 09:15

C de V

The UK battery storage market has built far too much capacity and it is evident in the £ per MW Hr.

More frustratingly GRID/HEIT, GSF to a lesser extent and I assume others are continuing to build more as they spend up to their borrowing limits.

Here are the £ per MW Hr figures from GSF for the quarter to the end of Sept. I've read them off a chart so they aren't exact. They do vary by season etc. but you get the idea.
UK £16
Germany £20
Ireland £40
Texas £140

But what's probably more important for GRID is the UK for qtr end 2022 which was £40
As far as I can tell this quarter's numbers for the UK are even lower than £16. Much lower.


I do not think these battery storage trusts should be building out any more as they are just screwing up their own income in the UK. Just my view of course.

I do not hold GRID

I find Gresham House generally seem to be working too much in their own interests rather than those of shareholders.

[cruelladeville] 16/1/2024 08:31

But only a month ago GRID said - "We have seen an increase in actions in the Balancing Mechanism (BM) for BESS assets. It is too early to point to the specific revenue impact, but the initial indications are positive and, based on provisional data, are expected to lead to increased revenue opportunities for our assets." I can't see any reason for the very poor recent share price performance.

[income investor] 15/1/2024 18:33

GSF similarly down this year. Perhaps Mr Market knows something we mortals don't? Perhaps National Grid's new system not paying out well for battery storage??

[cruelladeville] 15/1/2024 18:13

I can't see any reason for the very poor recent share price performance here? Cheap as chips?

[nerja] 15/1/2024 17:17

Lots of 10k and 2k trades been going through the last couple of weeks, seller shorter only time will tell but until they stop this goes down further ,imho

[cc2014] 09/1/2024 08:36

Saudi yesterday announced they are dropping their prices for Feb delivery. I wasn't paying particular attention but spot gas prices down about 8% at mid-afternoon yesterday and oil perhaps around 5%.

Basically perception long term electricity prices will fall I guess.

GRID for whatever reasons seems to have a particularly high beta. I don't own.

[cruelladeville] 09/1/2024 08:18

Wondering the same myself. Can't see any reason for the ~5% drop yesterday?

[dickiehhh] 08/1/2024 19:19

anyone know why the big fall today?

[willywonka12] 01/1/2024 11:33

Do you think searchlight might list this on on the Nasca index

[llef] 12/12/2023 15:26

"National Grid needs to find ways to integrate growing supplies of intermittent electricity with demand. To achieve the goal of having a carbon-free electricity network by 2035, storage is needed to take renewable power when it’s abundant and discharge it when it is scarce. Up to now, the UK has been underusing available battery capacity and relying on gas assets to fine tune supplies.

“As of today, they will literally let the system cobble together the most competitive assets and they will almost always be batteries,” said Ben Guest, managing director at Gresham House, an alternative asset manager with an energy storage fund. “We’re going to see a dramatic change in how the grid is balanced as of today.”

[igoe104] 22/11/2023 18:57

Good news for renewables in the budget.

New projects will be exempt from Electricity generator Levy from today..

[igoe104] 21/11/2023 07:23

GRESHAM HOUSE ENERGY STORAGE FUND PLC

("GRID", "the Fund" or the "Company")

West Didsbury Project Energisation

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund dedicated to investing in utility-scale battery energy storage systems (BESS), is pleased to announce that its West Didsbury project (50MW/50MWh) has been successfully energised taking the portfolio's operational capacity to 690MW. It is expected to be revenue generating in December.

West Didsbury is planned to undergo a duration extension to two hours in early 2024 which will take the capacity of the site to 50MW/100MWh, increasing its earnings potential.

The project was developed and built by Statera Energy Limited, and trading will be optimised by Arenko Cleantech Limited.

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc and Managing Director of Gresham House New Energy, said:

"With three projects totalling 140MW energised so far in 2023, we are making good progress towards fully commissioning our 2023 pipeline and reaching our target of 1GW of operational projects by H1 2024 and 1.1GW/1.7GWh by the end of 2024, excluding any potential disposals.

"With each new MW and MWh of capacity added, we drive down the threshold of cashflow per MW and per MWh required to cover our dividend. We look forward to announcing new project energisations, which will drive further operational scale, in the coming months."









 

[marktime1231] 17/11/2023 14:07

Can't even get a dividend announcement right, what a shambles.

Noticed a snippet yesterday that the Swedish global pe firm EQT Infra has bought up Statera, on whom GRID are waiting for very overdue projects. Were they having capital problems maybe, is this good news perhaps - versus whether these delayed projects are the ones blocking the grid connectivity pipeline and might be pushed aside?

And last evenings's grid event where we came close to not being able to meet electricity demand (nuclear reactor shut downs, imports from France cut back, no wind, for some reason emergency coal plant not running, a household £3/kWh sit-in-the-dark event ...) causing prices to spike to £260/MWh later on was a good opportunity for GRID or had batteries run out of stored energy by then?

GRID may not have deserved to slump to 80p but I can't see why it has recovered to 100p either.

[speedsgh] 17/11/2023 08:55

Declaration of Dividend -

Gresham House Energy Storage Fund PLC (LSE: GRID) is pleased to announce a dividend of 1.8375p per Ordinary Share for the period from 1 July 2023 to 30 September 2023. The dividend will be paid on 21 December 2023 to Shareholders on the register as at the close of business on 7 December 2023. The ex-dividend date is 6 December 2023.

Any such dividend payment to Shareholders may take the form of either dividend income or "qualifying interest income" which may be designated as an interest distribution for UK tax purposes and therefore subject to the interest streaming regime applicable to investment trusts. Of this dividend declared of 1.8375 pence per Ordinary Share, 0.3375 pence is declared as dividend income with 1.5 pence treated as qualifying interest income.

[2wild] 13/11/2023 16:21

Picked some up at the opening this morning. Already showing a 5.5% gain after costs.

[jimjamthe2nd] 12/11/2023 19:54

@nickrl My worry with HEIT is its smaller market cap and only GB Assets. I have some shares in all 3 BESS trusts, currently most in HEIT, but have been considering changing that by moving more into GSF or GRID. Leaning towards GRID at the mo, as they have been better at growing NAV. Q3 Nav updates should be out soon, so prob sit on my hands a bit longer.

[2wild] 12/11/2023 13:44

Certainly tells a good story on the podcast. Although if you listen to previous20, there are many seemingly compelling Investment trusts I'm wide discounts to NAV and generous dividend yields. Some have initially risen following podcast, only to fall heavily during the next few weeks/months. Eg AUGM closed at 107.5p on 7th July, rose to 110p, Following money makers podcast afew days later. Subsequently drifted down over 25% to 82p now, on a 49% discount to nav.

[marksp2011] 12/11/2023 13:02

38% discount to Nav11% discount rateYield >8%Something truly disastrous is needing to happen to the business for this price level to be justifiedIn terms of income stream, a drop in rates will decrease the discount rate, increase NAV and make the income stream more attractive versus risk free so......the share price should rise.The moral here is that current holders are at the bottom and starting to recover new buyers will be starting in a great position

[nickrl] 12/11/2023 09:47

@jimjam listened to that and reinforces my view that they got taken in by the easy money from frequency response 18mths ago and didn't effectively get themselves prepared for what was coming once the BESS mkt got saturated. They have reacted now and actually have to give them credit that they have been easily been able to upgrade many existing sites with extra batteries very quickly (ie no planning or grid connections dramas) so will soon have plenty of 2hr duration assets. The new grid despatch mechanism comes on line in a few weeks which will generate more revenue for sure but batteries will be cycling more and like frequency response it could just end up pushing prices down as more BESS start competing.

Not in here currently but they've recovered a fair bit now so favour HEIT who have treaded water.

[jimjamthe2nd] 11/11/2023 17:30

Podcast interview with Ben Guest @ 18 mins

[igoe104] 10/11/2023 09:11

Battery wholesale trading revenues reach highest level since 2022 in October

[llef] 06/11/2023 14:45

longer term this is good news for battery storage...

hxxps://www.nationalgrid.com/national-grid-accelerate-20gw-grid-connections-across-its-transmission-and-distribution-networks#:~:text=National%20Grid%20is%20accelerating%20the,ongoing%20collaborative%20work%20across%20industry.

[cruelladeville] 02/11/2023 21:10

How did GRID manage a fall in share price today? Disappointing.

[nickrl] 25/10/2023 08:23

@jimjam thats interesting info surprised GRID dont promote this more but they are only interested in the numbers. If all the others can be easily extended like thats certainly a positive.

[jimjamthe2nd] 24/10/2023 20:43

I quite regularly pass the Enderby BESS, and the other week I noticed a crane off loading multiple new containers onto the site. It looks to me like they are starting the upgrade to 2hours. I imagine they still need to put in the batteries, but it's a start. From the pictures off the developers webpage, you can clearly see they have already prepared the site for more batteries.