Investment firm Gore Street Energy Storage Fund has detailed that its portfolio generated an average turnover of £16.1/MWh in January and February 2024.
Detailed in its Q4 2023 financial results, the fund achieved a net asset value (NAV) of £549.8 million, up from the previously reported £543.3 million at the end of September 2023.
Gore Street confirmed that its UK portfolio also generated an estimated 15% of total revenue in the fourth quarter of 2023. The company’s consolidated portfolio is estimated to have generated an average of £15.12/MWh during the company’s third financial quarter.
A key revelation in the results is that Gore Street’s exposure to GB, as a percentage of its operating capacity, is expected to decline to around 30% on a MWh basis by the end of 2024. All other long-term assumptions remain unchanged. said firm.
GB capacity market results
Gore Street has also secured several contracts from the February 2024 Capacity Market Auctions. This includes T-1which delivered an average of £35/kW/year, and T-4which reached an “all-time record” of £65/kW/year.
At the T-1 auction, Gore Street secured contracts for four projects at a clearing price of £35.79/kW for delivery in 2024/25. At the T-4 auction, the company secured additional contracts for five £65/kW projects, scheduled for delivery in 2027/28.
The company said the new contracts have a combined value of approximately £1.7 million. It is worth noting that these contracts typically represent around 10% of the company’s UK turnover, it was confirmed.
Gore Street’s diversified portfolio mitigates warehousing revenue concerns
According to Gore Street, the company’s internationally diversified portfolio has allowed it to mitigate some of the issues in the UK battery energy storage systems (BESS) market, which was identified as a concern in early February.
Both Harmony Energy Income Trust and Gresham House Energy Storage Fund also raised concerns earlier this year about the low income levels faced by many in the GB BESS market. This is mainly due to the fact that assets have not been able to participate in balancing the UK electricity grid or completely replacing gas-fired electricity generation.
Commenting on this, Alex O’Cinneide, CEO of Gore Street Capital, the firm’s investment manager, said: “The collapse in prices in the UK market has hit the entire sector, but the market is realizing the value of the resilience of international portfolio of the company and the strength of the investment manager’s active management strategy.
“This value was reflected at the December quarter end, with the consolidated portfolio delivering an estimated average return of £15.1/MW/hour, consistent with the previous six months and more than double that of Britain alone. The Northern Ireland portfolio was particularly strong, delivering record revenues of £31.4/MW/hour in the final quarter to maintain performance during seasonal fluctuations within the portfolio.”
