Operational Energy Storage Acquisition in Germany

04 March 2022

Gore Street Energy Storage Fund plc

(the "Company" or "Gore Street")

Operational Energy Storage Acquisition in Germany

First Investment in Continental Europe

Gore Street, London's first listed energy storage fund supporting the transition to a low carbon economy, is pleased to announce that, in line with its mandate to expand outside of the UK and Ireland, it has successfully completed the acquisition of a 90% stake in a 28 MWh operational energy storage asset based in Cremzow, Germany (the "Acquisition").

The acquisition of an asset in mainland Europe signifies an exciting opportunity for Gore Street, as it diversifies its exposure to new revenue streams across the inter-connected European grid network. Cremzow has been operating since 2019; providing a critical suite of balancing and frequency services across eight countries and eleven associated Transmission Network Operators (TNOs) in the European grid system. Cremzow can participate in wholesale and intra-day arbitrage, presenting additional revenue stacking opportunities similar to GB and Irish markets. In addition, the intent by the EU to diminish co-dependency on gas and other fossil fuels, reinforced by the current Ukraine crisis, will likely further enhance the already pressing need for energy storage infrastructure in the region.

The Acquisition represents the first step in Gore Street's announced strategy to diversify beyond the UK and Irish markets. Following the Acquisition, the Company's operating assets will have increased to 232 MW, and total portfolio assets under management increased to 629 MW.

The site was developed in two stages by Leclanche, Enel Green Power and Enertrag, starting with an initial 2.0 MW asset and followed by an additional 20.0 MW expansion. The system is based on LG Chem lithium-ion batteries. LG Chem is a leading battery supplier and existing relationship of Gore Street. Enertrag, a leading German renewable developer, will retain a 10% stake and will support the technical management of the project.

The asset was purchased from Enel X Germany Gmbh, a subsidiary of Enel X, which is Enel Group's global business line offering services that accelerate innovation and drive the energy transition, which manages demand response for around 7.7 GW of total capacity globally.

Alex O'Cinneide, CEO of Gore Street Capital, the Company's investment manager, commented:

"The Company has, as part of its growth plans, achieved international expansion firstly in 2019 with our move into the Irish energy system, and now in 2022 into mainland Europe. Gore Street has a unique skill set, drawing on our first mover advantage in GB, in owning and operating an international portfolio, and will continue to aggressively pursue critical markets such as Germany.

This is a landmark acquisition with compelling fundamentals which not only demonstrates our entry into new markets but also increases our operational cash generating assets, and further diversifies Gore Street's portfolio. We are very pleased to have worked with ENEL on this transaction and look forward to continuing to partner with Enertrag to optimise the asset going forwards.

Energy storage is an ever-increasing infrastructure requirement, and we will continue to seek out the best opportunities from our considerable pipeline across our key markets."

ENDS

The Legal Entity Identifier of the Company is 213800GPUNVGG81G4O21.

For further information:

Buchanan (Media enquiries)

JTC (UK) Limited, Company Secretary Tel: +44 (0) 20 7409 0181

Notes to Editors

About Gore Street Energy Storage Fund plc

Gore Street is London's first listed energy storage fund and seeks to provide Shareholders with a significant opportunity to invest in a diversified portfolio of utility scale energy storage projects. In addition to growth through exploiting its considerable pipeline, the Company aims to deliver consistent and robust dividend yield as income distributions to its Shareholders. 

Disclaimer

This announcement has been issued by, and is the sole responsibility of, Gore Street Energy Storage Fund plc (the "Company").

This announcement is for information purposes only and is not intended to and does not constitute or form part of any offer or invitation to purchase or subscribe for, or any solicitation to purchase or subscribe for shares in any jurisdiction in which such an offer or solicitation is unlawful.

The information and opinions contained in this announcement are provided as at the date of the announcement and are subject to change without notice and no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information contained herein.

The information in this announcement may include forward-looking statements, which are based on the current expectations, intentions and projections about future events and trends or other matters that are not historical facts and in certain cases can be identified by the use of terms such as "may", "will", "should", "could", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereof) or other variations thereof or comparable terminology. These forward-looking statements, as well as those included in any related materials, are not guarantees of future performance and are subject to known and unknown risks, uncertainties, assumptions about the Company and other factors, including, among other things, the development of its business, trends in its industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur and actual results may differ materially from those expressed or implied by such forward looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements.