Gore Street Energy Storage Fund has reported a 27% rise in operational capacity to 372MW for the quarter ending 31 December 2023.
This follows the 79.9MW Stony asset becoming commercially operational during the period.
The company remains on target to achieve an operational portfolio exceeding 800MW by the end of 2024, its directors said.
The energy storage fund’s consolidated portfolio generated an estimated £15.1/MW/hr, consistent with the £15.1/MW/hr generated during the prior six months to 30 September 2023.
Gore Street said that this stable revenue profile has been achieved through the company’s diversified portfolio incorporating multiple uncorrelated markets, system chemistries and durations.
The company’s Northern Irish assets, for example, delivered record high estimated revenue of £31.4/MW/hr during FY Q3, building on the strong revenue performance of its Texas portfolio during FY Q2, the directors reported.
The seasonal patterns of revenue generation across grids aligns with expectations and emphasises the significance of uncorrelated revenue cycles between markets, underscoring the advantages of activity across diverse, uncorrelated grids within an energy storage portfolio, they added.
The energy storage fund also established a new strategic partnership with Nidec was established with 14,000,000 new Ordinary Shares issued at NAV.
Alex O’Cinneide, chief executive of Gore Street Capital, the investment manager of the fund, said: “As we begin 2024, we are optimistic about the trajectory of the company.
“Demand for the asset class continues to grow at pace, with renewable energy targets pushing multiple grids to a critical turning point.
“Fossil fuel use in the UK fell to its lowest level ever in 2023, with consumption of intermittent renewable energy sources surpassing that of traditional base load power, leading to an even greater demand from grid operators for flexible assets like ours.
“While 2023 posed challenges, I believe it served as a valuable illustration of the value we have always seen in a diversified portfolio.
“Energy storage is fundamentally a merchant asset class and one that requires diversification as a solid foundation.
“Despite fluctuations in the share price, our NAV and revenue generation across the portfolio have remained strong.
“In addition to showcasing operational excellence throughout the year, we achieved significant milestones. We successfully secured project-level debt for the Big Rock asset in California, the kind of financing uniquely available to GSF given its international exposure. Moreover, our strategic partnership with Nidec marks the beginning of a promising long-term alliance.
“We also increased trading activity over the period as part of a more dynamic strategy aided by new route-to-market partners.
“The company’s revenue stack has always included some share of trading and we are now leveraging this experience to carry out higher levels of trading than ever before within the portfolio, particularly in European markets where opportunities for innovative trading are scales above what is possible in GB.
“Looking ahead, we anticipate the company’s most pivotal year yet with operational capacity scheduled to expand to over 800MW, including 200MW coming online in the company’s fifth market to date; potential capital recycling; and a strengthening dividend cover from a diverse source of revenue streams.
“The company is poised for significant growth and we look forward to updating the market regularly as these plans progress.”