Business
GB Capacity Market Contracts and Portfolio Update
GB Capacity Market Contracts and Portfolio Update.
About this update from Gore Street Energy Storage Fund Plc
[{"type":"text","content":"\n \n \n 27 February 2023\n \n \n Gore Street Energy Storage Fund Plc\n \n \n ('GSF' or the 'Company')\n \n \n \n \n \n \n GB\n \n \n Capacity Market Contracts and Portfolio Update\n \n \n \n Gore Street Energy Storage Fund (the \"Company\"), the internationally diversified energy storage fund, is pleased to announce the following update. GSF notes the recent Capacity Market auction, in particular, in which contracts were secured at record-level prices.\n \n \n \n \n \n \n GB Capacity Market Auction Results\n \n \n \n ·\n The Company secured contracts in the 2023 T-4 auction across six sites. These contracts are expected to commence delivery in October 2026 and have a combined value of c.\n £45 million. They will provide a\n consolidated revenue of c. £3.76 million between October 2026 and September 2027. The 200MW (Middleton site) is expected to generate £2.97 million annually in Capacity Market revenues for 15 years\n (subject to CPI adjustments)\n .\n \n \n \n \n \n ·\n The Company also secured contracts for three sites in the 2023 T-1 Capacity Market auction. The contracts, which have a combined value of £1.8 million, will provide critical capacity to the UK's National Grid and are set to commence on 1 October 2023, lasting for a period of one year.\n \n \n \n \n \n ·\n The revenue outlined above is in real terms and is expected to be adjusted upwards for inflation.\n \n \n \n \n \n \n Portfolio Update\n \n \n \n In line with the Company's gearing policy, as set out in the Prospectus dated 29 March 2022, the Company may utilise debt up to 30% of gross asset value. Although this permits the Company to borrow up to c. £230 million inclusive of the £15 million RCF currently in place, utilisation of this capacity will depend on the cost of debt and the return available on investment. The Investment Manager is engaging with the debt markets and reports strong demand from lenders at both project and portfolio levels. Shareholders will be updated on the outcome of these discussions in the near term.\n \n \n Gore Street's investment manager, Gore Street Capital Limited (the \"Investment Manager\"), estimates the total capex requirement to build out the Company's portfolio will be c. £370 million (inclusive of contractual commitments already entered) between now and 2026. Out of the £370 million, c. £173...