18th Oct 2024 09:44
(Alliance News) - Gore Street Energy Storage Fund PLC on Friday announced its California-based Big Rock asset has secured a resource adequacy contract with Goldman Sachs Group Ltd.
The London-based investor in utility-scale energy storage projects managed by Gore Street Capital Ltd said the twelve-year, USD14 million agreement is with Goldman Sachs subsidiary J Aron & Company LLC, and is set to begin in the summer of 2025. The contract is stackable, which the company said would allow for concurrent revenue streams across wholesale trading and ancillary services.
Gore Street Energy acquired the 200 megawatt Big Rock asset in February 2023. It remains on track to be energised by December this year.
The RA programme involved in the contract ensures enough generation resources are available to meet the energy system's supply requirements in California. This involves contracting companies like Gore Street Energy to provide physical resources, such as energy storage, to allow flexibility and reliability in the power supply.
Gore Street Energy said the contract would "significantly enhance" the group's total revenue generation.
Gore Street Capital Chief Executive Officer Alex O'Cinneide said: "This resource adequacy contract marks the next exciting step for the company as a new revenue stream is secured for the portfolio. Securing this contract is a significant milestone for the company's cash flow. Based on contracts now in place, the company's contracted cash flows will increase fourfold compared to financial 2024.
"California represents a particularly attractive location for investment, as the state is rapidly decarbonising its energy supply to reach carbon neutrality by 2045. Renewable technologies, led by the state's around 20 gigawatts of installed grid-scale solar capacity, are already delivering high levels of power throughout the year and creating unique challenges in managing the grid. Energy storage is proving itself to be a crucial technology in facilitating California's energy transition, reducing curtailment of renewables and supporting system operations during periods of steep ramping.
"We look forward to adding our expertise to the [Californian independent system operator] market with the Big Rock asset, and further diversifying the company's revenue and geographic exposure."
Shares in Gore Street Energy were up 5.0% at 56.27 pence in London on Friday morning.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.