Gresham House Energy Storage Fund revenues will start to recover in 2024 after a decline in 2023, fund manager Gresham House said.
Gresham House Energy Storage Fund plc, listed in London under the GRID ticker, owns and operates battery energy storage system (BESS) projects in the UK and announced its annual results this week (April 29).
Company confirmed the ‘weak revenue environment’ of 2023 with revenue down 38% to £38.7 million (US$48 million) and EBITDA down 47%, and the fund turned to a loss of £110 million from a profit of £217 million last year. The net asset value (NAV) per share fell by 17% to 129.07p.
GRID had 690 MW/788 MWh operational at the end of 2023, a market share of approximately 17% based on BESS’s 4 GW/4.9 GWh at network scale online according to figures from Solar Media Market Research.
The main reason revenues for GRID and all other UK BESS owners and operators fell in 2023 is due to falling prices in the ancillary services markets.
However, this has recovered in 2024, as evidenced by a trading update a few days before the annual results. Average revenues for the operating BESS increased from £39,500/MW/year in February 2024 to £77,900/MW/year in the first half of April 2024, an increase of almost 100%.
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