17th Feb 2023 08:47
(Alliance News) - Gore Street Energy Storage Fund PLC on Friday said it has agreed to buy Big Rock, an energy storage project located in Imperial County, California.
Gore Street Energy is a London-based investment company focused on energy storage.
Gore Street will buy the 200 megawatt / 400 megawatt hour energy storage project from Avantus LLC.
The company said project acquisition costs are around USD110 million. Following the transaction, the company's cash position will be about GBP144 million.
This will be the company's first investment in California, it noted, and will diversify its revenue streams and geographical exposure.
Gore Street said the project will be connected to CAISO, one of nine independent system operators in North America. It added that the CAISO grid provides electricity to 80% of California and a small part of Nevada.
The project has secured material land rights, planning consents and a grid connection scheduled for the second half of 2024. Commercial operations will begin shortly after.
Gore Street also noted that the project will be eligible to benefit from an investment tax credit for up to 30% of qualifying capital expenditure via the Inflation Reduction Act, which was passed in late 2022.
Following the acquisition, Gore Street's portfolio will consist of 27 projects with a total capacity of 1,173 megawatts of operational and construction assets.
Chair Patrick Cox said: "With this acquisition, the company is now diversified across five high-growth grids, underpinning our push into international markets, where we continue to see attractive new investment opportunities in line with our target returns. We remain dedicated to performing competitively across the sector's core metrics - cost per megawatt and revenue per megawatt / megawatt hour - as this ultimately drives returns for shareholders."
Shares in Gore Street were down 0.8% to 106.36 pence each in London on Friday morning.
By Sophie Rose, Alliance News reporter
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