Gresham House Energy Sto... Share Discussion Threads

[hpcg] 14/10/2020 08:30

Expanding with debt is a step in the right direction. 5% for secured is steep so I presume those bonds are in effect a revolver and they'll soon issue actual bonds at something like 2%.

[igoe104] 09/10/2020 14:18

Simon Thompson From the IC - Mentions ( Grid ) positivity in his latest podcast.

20 minutes in -

[igoe104] 25/9/2020 12:34

Nice Divi Paid today, good solid investment - especially in uncertain times.

[jonwig] 02/9/2020 05:48

Yes, they do explain things ... but it's pretty complicated!

[rambutan2] 01/9/2020 20:07

Interims, nav drops a little to 98.16p. All is reasonably explained:

[lord mandelbaum] 21/8/2020 10:06

Just added a few more at 113.6p. With the 7p a year annual dividend I can't see much better places to hoard the "safe" part of my portfolio.

[hpcg] 21/7/2020 12:22

'ESG' investors got to put their BOO money somewhere.

[rogerrail] 21/7/2020 11:37

Alternatively GSF yield is still good at 6.6%

[spittingbarrel] 21/7/2020 11:13

The strength has surprised me somewhat so I've switched some into FSFL for a good pick up in yield.

[hpcg] 20/7/2020 07:22

hiddendepths - this shouldn't really have explosive growth given it works at the low risk end of the process. It takes no development risk, but buys functioning sites providing developers with an exit. It does have IP around yield maximisation, which is important and does make it stand out to a passive investment trust justifying a premium. Really what I am looking for is a dividend that grows above inflation.

[jonwig] 20/7/2020 06:16

Possible reason for the recent surge:

The UK Government has moved to relax planning rules for large-scale energy storage arrays, in the hopes of speeding up the energy sector's net-zero transition and boosting investment in the sector post-lockdown.
Battery storage projects are becoming increasingly common in the UK, but investment and installation had lagged in the first half of 2020

Battery storage projects are becoming increasingly common in the UK, but investment and installation had lagged in the first half of 2020

Ministers at the Department for Business, Energy and Industrial Strategy (BEIS) voted on Tuesday (14 July) to pass secondary legislation which will enable storage projects above 50MW to be developed in England. 50MW had previously been the limit for one cell, without approval from the Nationally Significant Infrastructure Projects (NSIP) regime. As such, the UK’s largest battery project, currently under development in Wiltshire, consists of two 50MW cells.



Look out for another equity fundraising! (March was such a long time ago.)

[hiddendepths] 16/7/2020 07:59

I thought this would take off with the explosive share price performance of many of the clean energy stocks. Slightly surprised it's taken this long.

[jonwig] 14/7/2020 07:28

I think it's in the 'specialist fund segment' of the LSE, so you have to self-certify as a sophisticated investor with your broker to deal in it. Some brokers can't be bothered to offer that service. (II does.)

[igoe104] 14/7/2020 07:27

HI GH, I purchased my shares Via AJ bell platform. i had to fill in a risk assessment questionnaire before i could purchase them.

[global nomad] 14/7/2020 07:21

I have had GRID on my watchlist for some time but it wasn't available to buy on IWEB. News yesterday suggests now was time to jump on, have also bought into GSF. IWEB said it is not an area of the market they trade in. Wondering if I need to open another trading account just to get access to GRID.....how are those invested here buying this stock? thanks

[jonwig] 08/7/2020 14:32

The bonds are EIS-available:

This is just to let you know the GRID Power Bonds offer is now open.

The bonds offer to pay 5.0% gross p.a. over a term of five years – not guaranteed. The minimum investment is quite high – £105,000 plus placement fee – so they are not for everyone. For some investors, though, the offer could be highly attractive, in our view.

Bondholders will lend money to Gresham House Energy Storage Holdings plc and have security over its bank account. The funds raised from experienced investors will be used to acquire or refinance energy storage projects that help the National Grid cope with the peaks and troughs of electricity demand and supply.

Gresham House Energy Storage Holdings is a subsidiary of Gresham House Energy Storage Fund plc (“Fund”), a listed investment trust – the UK’s largest fund focused on utility-scale energy storage. The investment manager is Gresham House, a leading specialist alternative asset manager, which manages c.£3 billion on behalf of institutions and private individuals.

The offer is due to close on 20 July 2020, subject to capacity, and you can apply online.
From an email I got today.

[igoe104] 08/7/2020 12:44

Rishi Sunak confirms £3bn green jobs plan to save money, cut carbon and boost employment.

[jonwig] 07/7/2020 06:14

RNS re debt financing through "private bonds":



Wanting £15m with a 5% coupon for 5 years. Why not give it a whirl on ORB? I'd buy a few!

[jonwig] 07/7/2020 06:07

Sector news, Telegraph:

Tesla has equipped a new energy storage plant in Dorset, capable of powering 17,000 homes, in the firm's first major foray into the British power industry.

The car maker is supplying its Megapack high-capacity batteries, and Autobidder control software, to UK business Harmony Energy and Spanish company FRV for a site in Poole which will store electricity generated by wind farms and release it to the grid when needed.

Harmony Energy:

[igoe104] 03/7/2020 07:45

I purchased a big chunk a couple of weeks ago, good to see them building the portfolio.

acquisition of 41MW Bloxwich battery storage project from Arenko Group and Pipeline Update

Gresham House Energy Storage Fund plc (LSE: GRID), Great Britain's largest operational battery storage fund, is pleased to announce that it has completed the acquisition of a 41MW operational energy storage facility known as Bloxwich from a group of investors led by Arenko Cleantech ('Arenko'). This project was previously disclosed by GRID as the 'Potential Acquisition'. The acquisition increases the total capacity of operational utility scale battery storage projects in the Fund's investment portfolio to 215MW.

The facility is located on the Bloxwich Industrial estate in Walsall in the West Midlands and was developed by Arenko and utilises their leading battery software and controls platform. Post-acquisition, Arenko will continue to operate and optimise Bloxwich, which has been acquired by the Fund for an initial value of GBP20.1 million, with further potential earnout payments.

Bloxwich was commissioned in July 2019 and operates in the Balancing Mechanism, European Power Exchange (EPEX) and other ancillary services markets, such as frequency response. In mid-May 2020, it was used to provide upward and downward reserve flexibility to National Grid in the UK's first-of-its-kind trial using an energy storage system ('ESS'). Existing upward and downward reserve services are typically provided by large Combined Cycle Gas Turbines and other thermal generation at a significant financial and carbon emissions cost to the UK grid. In essence, an ESS provides an exciting, more cost-effective source of grid flexibility and these systems are likely to be central to a zero-carbon emissions grid of the future.

John Leggate CBE, Chair of Gresham House Energy Storage Fund plc commented:

"Bloxwich is a further step forward in our ambitions to build Great Britain's essential renewable power storage infrastructure. We're pleased to welcome Arenko, as one of our partners, to support operational management and trading optimisation at Bloxwich. With the operational portfolio now over 200MW for the first time, we continue to make progress executing on our 2020 plan, and we look forward to updating our shareholders."

Ben Guest, Fund Manager, Gresham House Energy Storage Fund plc said:

"We are delighted to have completed this acquisition . Arenko is one of only a handful of innovative and technically-capable operators and optimisers of energy storage systems in the market, as demonstrated by their recent announcements. We look forward to working with them as the market burgeons in Great Britain."

Rupert Newland, CEO and Founder of Arenko Group, added:

"This is a transformational deal for Arenko as it marks our transition from an asset owner to a software service provider. We see batteries and other flexible assets playing a meaningful role in the energy transition and believe intelligent AI software platforms will be a crucial enabler to unlock value from batteries globally. We look forward to working with Gresham House in helping them maximise the value of their assets in the future."

Operational Portfolio


Facility Location MW Acquisition date
--------------------- ----------------- ---- -----------------
Staunch Staffordshire 20 November 2018
Rufford Nottinghamshire 7 November 2018
Lockleaze Bristol 15 November 2018
Littlebrook Kent 8 November 2018
Roundponds Wiltshire 20 November 2018
Wolverhampton West Midlands 5 August 2019
Glassenbury Kent 40 December 2019
Cleator Cumbria 10 December 2019
Red Scar Lancashire 49 December 2019
Bloxwich West Midlands 41 July 2020
--------------------- ----------------- ---- -----------------
Current Operational
Portfolio 215
---------------------------------------- ---- -----------------

Pipeline Update

Minor delays due to COVID-19 restrictions mean the Wickham Market and Thurcroft projects are now expected to be completed by the end of Q3 2020. The Board anticipates any delay to be revenue neutral for the Company.

Both of these projects are battery-only sites, each with 50MW import/export capacity.

Following completion of these two projects, and the 10MW Glassenbury extension due to be commissioned in Q3 2020, the Fund will have 325MW of operational capacity and will be fully invested.

[fozzie] 11/6/2020 17:30

Thanks for the replies chaps. After a bit of a pummelling the last few days I am definetly looking at a secure income stream. Sometimes I wonder why I don't just let Mr Smith look after my entire portfolio.

[hpcg] 11/6/2020 17:00

jonwig - I agree with those sentiments. I would add that in a zero or negative interest rate environment some companies can borrow at low rates and turn it into profit. I see GRID as offering a return over base that keeps up with monetary inflation. It so happens to operate in an area where there is a structural deficit.

[jonwig] 11/6/2020 15:53

fozz - good stuff is bid up. Just about anything in "renewables", property cos in good sectors (AGR, SGRO, SUPR, etc.) is sitting at a premium.

If you think that the NAVs are based on future discounted cashflow, investors think that the discount rate is too high given the security of the income stream. You're getting an income stream as safe as gilts but a lot higher, so NAV is secondary.

That's the argument, anyway, and look at the carnage elsewhere.

[fozzie] 11/6/2020 15:07

'This deserves a hefty premium to Nav' can I ask why hd? I am interested in buying shares here, I get the green agenda and that battery storage is going to be a big mover in the future but am a little loathe to pay 110 for a nav of 101.5

[thewheeliedealer] 08/6/2020 20:31

Hi all,

My mate Peter @Conkers3 and myself did a Twin Petes Investing Podcast a few days ago and part of our discussion covers GRID. We also chatted about the current situation in the Markets and covered loads of Stocks and as always a fair bit of general Portfolio Management educational stuff. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 24) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer