Significant Acquisition and Construction Milestone

25 January 2023

Gore Street Energy Storage Fund Plc

('GSF' or the 'Company')

Significant Acquisition and Construction Milestone Achieved

75 MW / 150 MWh Texas Asset, the Largest Acquisition to Date in the US

Gore Street Energy Storage Fund plc (ticker: GSF), London's first listed energy storage fund supporting the transition to low carbon power in the UK and internationally, is pleased to announce that it has agreed to acquire a 75 MW / 150 MWh energy storage project (the "Project") located in Texas, United States. Following this acquisition, GSF's internationally diverse portfolio will consist of 26 projects with a total capacity of 973.2 MW in operation and construction across the UK, Ireland, Germany and the United States.  

The project will be the Company's largest acquisition in the ERCOT Market to date and brings the Company's total US portfolio to 144.7 MW. The pre-construction project has secured all land rights, grid connections and planning consents and is expected to be of two-hour duration. The grid connection is scheduled for H1 2024, with commercial operations to commence shortly thereafter.

Gore Street's investment manager, Gore Street Capital Limited (the "Investment Manager"), estimates the Project will have an unlevered IRR in the range of 10-12%, in line with GSF's target. Total expenditure on the project to commission is expected to be a minimum of £50m.

North America remains a key target for the Company. The current regulatory landscape is becoming more favourable, with the Inflation Reduction Act introducing policies supporting energy storage deployment. The Electric Reliability Council of Texas (ERCOT) is the grid operator for most of Texas; GSF's operational portfolio in ERCOT balances the grid by providing ancillary services and derives further revenue through participation in the wholesale market. ERCOT continues to be a lucrative market due to the high penetration of renewables, creating a unique opportunity for battery storage. ERCOT has seen ancillary prices clear to almost $ 3,000 / MW / hr. in 2022. 

Construction Milestone Achieved

The non-contestable works, including grid transformers dedicated to the Stony project, were energised on the 23rd of January, on schedule for its expected operational start next quarter.

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

"We are pleased to announce this acquisition in the high-growth market of ERCOT, US, adding to the Company's existing international portfolio of energy storage assets. This is a continuation of our diversification strategy of reducing single-point risk while gaining exposure to high-growth markets that demonstrate favourable characteristics similar to the GB and Irish markets. We see this unique geographical diversification in energy storage as increasingly beneficial to shareholders during the current political and economic climate.

"I look forward to sharing our progress over the next 12 months as 187 MW of additional operational capacity is scheduled to become operational in GB. The assets will provide critical services to the National Grid and form a necessary part of the infrastructure required for the continued deployment of renewable energy generation whilst further increasing the diversification of the Company's revenue streams."

For further information:

Buchanan (Media enquiries)

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 an 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.