27th Feb 2023 10:25
(Alliance News) - Gore Street Energy Storage Fund PLC on Monday said it has secured several contracts in the 2023 T-4 auction across six sites, which have a combined value of around GBP45 million.
The energy storage fund said the contracts will commence delivery in October 2026, and provide consolidated revenue of around GBP3.8 million from October 2026 to September 2027.
It added that the Middleton site of 200 megawatts is expected to generate GBP3.0 million annually in capacity market revenue for 15 years.
The London-based company also secured contracts for three sites in the 2023 T-1 capacity market auction. Gore Street said the contracts, which have a combined value of GBP1.8 million, will provide critical capacity to the UK's National Grid and are set to begin on October 1, 2023, lasting for a period of one year.
Gore Street also gave a portfolio update on Monday. It explained that, as set out in March 2022, it may utilise debt up to 30% of gross asset value. This allows the company to borrow up to around GBP230 million, inclusive of its GBP15 million revolving credit facility currently in place.
Gore Street's investment manager, Gore Street Capital Ltd, estimates the total capex requirement to build out the company's portfolio will be around GBP370 million, inclusive of contractual commitments already entered, between now and 2026.
Out of the GBP370 million, Gore Street expects around GBP173 million is expected to be deployed in the next 12 months.
The company currently has around GBP144 million in cash or cash equivalents.
"As we look forward, we are exploring opportunities to expand our portfolio and take advantage of strong international markets for energy storage assets. While we are very well-capitalised, we recognise the potential benefits of judiciously utilising debt to finance our next phase of growth," said Chief Executive Alex O'Cinneide.
"We will continue to pursue a balanced approach to capital allocation, ensuring we retain the flexibility to respond to changing market conditions while continuing to focus on operational excellence to deliver further attractive returns to our shareholders."
Shares in Gore Street were up 0.8% to 104.79 pence each in London on Monday morning.
By Sophie Rose, Alliance News reporter
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