Gore Street Energy Storage Fund has completed the acquisition of a 90% stake in a 28 megawatt-hour operational asset in Cremzow, Germany, from Enel X Germany for an undisclosed price.
The site was developed in two stages by Leclanche, Enel Green Power and Enertrag, starting with an initial 2MW and followed by an additional 20MW expansion.
The system is based on LG Chem lithium-ion batteries.
Enertrag will retain a 10% stake and will support the technical management of the project.
The fund said 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 suite of balancing and frequency services across eight countries and 11 associated transmission network operators.
The plant can also participate in wholesale and intra-day arbitrage, presenting additional revenue stacking opportunities similar to UK and Irish markets.
Gore Street said the acquisition represents the first step in its strategy to diversify beyond the UK and Irish markets.
Following the acquisition, the company’s operating assets will have increased to 232MW, and total portfolio assets under management increased to 629MW.
Gore Street Capital chief executive Alex O’Cinneide said: “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.”