Energy storage: Gore Street’s CEO updates investors

Energy storage infrastructure is seen as crucial for the renewable energy industry. The Gore Street Energy Storage Fund (GSF) offers investors a way to invest in this asset class.

The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results

Alex O’Cinneide, CEO of Gore Street Capital, talks to IG’s Jeremy Naylor about the Gore Street Energy Storage Fund (GSF) which is looking to raise a further £50 million and has commitments of £30 million from Ireland’s National Treasury Management Agency, a sovereign entity.

Interview summary

GSF owns assets in the UK and abroad, which aim to provide energy storage for renewable energy assets. Renewable energy is intermittent in nature – sun and wind are variable - meaning that energy flow to the grid is irregular. By owning assets in the main lithiumion batteries, GSF can provide energy storage capacity to the national grid.

At present GSF owns assets which have a 15-year life, with multiple revenue streams available to them. It is cash generative, paying out a 4p dividend this year, while aiming for a 7p dividend next year.

GSF currently has two operational assets, one in the North Yorkshire downs, working near a mining facility. The second is in North Wales, while there are two in construction. This week GSF announced four further projects two in Northern Ireland and two in the Republic of Ireland.

The deal announced this week is to acquire a 160MW portfolio of assets, which is more than 50% larger than Tesla’s facility in Australia. In addition, there is an option on another 140MW, with total capital requirements north of £100 million.

At the time of the interview, GSF traded at 82p down from the issue price of 98p, with 4p of dividends paid. Nevertheless, O’Cinneide is confident in the investment strategy, believing that 'the right set of circumstances' are in place for the share price to rise from here, with their strong pipeline and proven expertise in making money from these types of assets.

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