The following amendment has been made to the 'Trading Update' announcement released on 13 March 2023 at 07:00 under RNS No. 6620S.

The impact on NAV per share through the revaluation of new projects was +16.9p.

All other details remain unchanged.

The full amended text is shown below.

13 March 2023

GRESHAM HOUSE ENERGY STORAGE FUND PLC

("GRID" or the "Company")

Trading Update

Over 20% like-for-like growth in underlying portfolio EBITDA in 2022

Significant increase in expected operating capacity to 1GW in 2023 to drive growth in NAV and EBITDA

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund investing in utility-scale battery energy storage systems, is pleased to provide an update on its performance for the financial year ended 31 December 2022 and an outlook for 2023, ahead of the publication of its audited annual results in April 2023.

2022 highlights

§ Full year EBITDA of the underlying portfolio exceeded £48mn, a like-for-like increase of over 20%.

§ 7p dividend to be paid in respect of 2022, covered 1.3x.

§ 155.5p per share unaudited NAV as of 31 December 2022 (31 December 2021: 116.86p).

§ Unaudited NAV total return of 39.1% in 2022 and 93.2% since IPO, representing an annualised return of 17.2%.

§ NAV per share was largely driven by (all figures unaudited):

-       revaluation of new projects (+16.9p) as the pipeline moved closer to becoming, or became, operational during the year

-       growth in third party revenue forecasts reflecting increased volatility (+11.2p)

-       the addition of new Capacity Market (CM) contracts during the year (+6.7p)

-       increased inflation assumptions (+8.8p)

-       increase in discount rates: +50bp for contracted revenues to 5.5% and +25bp added to construction risk premium to 0.75% (-1.8p)

-       Weighted average discount rate of 10.9% (2021: 10.8%)

§ Operational capacity rose to 550MW as of 31 December 2022, up 29% (2021: 425MW).

2023 outlook

§ Q1 NAV per share to benefit from incremental project revaluations of +3.3p.

§ Operational capacity is expected to reach 1GW in 2023 and around 1.5GW in 2024, representing growth of 80% and 170% respectively compared to capacity as of 31 December 2022.  This is expected to drive NAV and EBITDA growth.

§ In light of the growth in EBITDA from increased operational capacity in 2022 and expected in 2023, the Board intends to pay a dividend of 7.35p per share for 2023, a 5% increase over 2022. The Board will periodically review the dividend policy to maintain a competitive dividend yield while also ensuring that dividend cover remains strong.

Portfolio and pipeline update

§ 590MW of operational capacity (31 December 2022: 550MW) following the commissioning of 40MW Coupar Angus project.

§ 437MW under construction and expected to commission in 2023.

§ 940MW of further pipeline in GB and Ireland expected to commence construction from later in 2023.

§ Recent transactions contributing to pipeline growth include:

-       50MW conditional acquisition of project rights in Aberdeenshire with grid connection expected in 2024.

-       100MW completed acquisition of project rights, including freehold land, in Cambridgeshire, with connection expected in 2026-27.

§ The Manager has established long-term arrangements in GB and Ireland to create visibility for a large pipeline for construction between now and 2030.

§ Similar arrangements being progressed in the United States, European Union and Australia.

T-1 and T-4 Capacity Market (CM) auction results

§ CM auctions took place on 14 and 21 February 2023, awarding contracts to GRID's operational and pipeline projects as follows:

-       T-1 auction: c.£5.8mn in revenues to be earned in the year ending 1 October 2024, from contracts awarded to 96.5MW of de-rated capacity, priced at £60,000 per MW.

-       T-4 auction: c.£30.5mn in revenues to be earned over 15 years ending 1 October 2041, assuming CPI at 2%, from contracts awarded to 28.8MW of de-rated capacity, priced at £63,000 per MW, a record high.

-       These contracts are expected to add c.4.2p to NAV per share over time.

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

"In 2022, the Manager grew the team's capabilities commensurate with the projected growth of the pipeline, optimised current operations, added balance sheet flexibility through its debt facility, improved construction oversight and built out the pipeline. The Board believes that we are exceptionally well-positioned to capitalise on the exciting battery energy storage opportunities ahead of us in the UK and our targeted international markets."

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc & Managing Director of Gresham House New Energy, added:

"We are pleased with the progress made in 2022, positioning GRID to deliver further income and capital growth in the years ahead. The investment opportunity is skewed to capital growth as new projects continue to commission. We expect our rising operational capacity in 2023 and 2024 to continue to drive GRID's NAV per share and earnings capacity meaningfully higher."

For further information, please contact:

About the Company and the Manager:

Gresham House Energy Storage Fund plc seeks to provide investors with an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility-scale battery energy storage systems (known as BESS) located in Great Britain and in Overseas Jurisdictions. In addition, the Company seeks to provide investors with the prospect of capital growth through the re-investment of net cash generated in excess of the target dividend in accordance with the Company's investment policy.

The Company targets an unlevered Net Asset Value total return of 8% per annum and a levered Net Asset Value total return of 15% per annum, in each case calculated net of the Company's costs and expenses.

Gresham House Asset Management is the FCA authorised operating business of Gresham House plc, a London Stock Exchange quoted specialist alternative asset manager. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

http://www.greshamhouse.com/

Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK's stated target to reduce carbon emissions. They store excess energy generated by renewable energy sources and then release that stored energy back into the grid during peak hours when there is increased demand.