Business
Update to Strategy and Capital Allocation
Gore Street Energy Storage Fund plc has announced an updated strategy focused on enhancing shareholder returns, committing to annual distributions of 7 pence per share, paid quarterly at 1.75 pence. This will be funded by operating cash flows and selective asset sales, which are projected to generate £25 million in FY26/27, £75 million in FY27/28, and another £75 million in FY28/29. The company will divest certain operational and pre-construction assets, including the German asset Cremzow, and will also pursue augmentations to increase the duration of viable assets to enhance their value before potential sale. Furthermore, selective partnerships may be formed to develop the pre-construction pipeline or fund augmentation capital expenditure, targeting projects with an expected IRR of approximately 15% and incremental energy capacity of around 100 MWh in FY26/27 and FY27/28, and 150 MWh in FY28/29. Cost reduction measures have also been implemented, including revising the investment management fee structure and removing performance and exit fees. Disclaimer*
About this update from Gore Street Energy Storage Fund Plc
[{"type":"text","content":"\n\nLEI: 13800GPUNVGG81G4O21\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION UNDER THE UK MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN\n \n17 March 2026\n \nGore Street Energy Storage Fund plc\n(the 'Company' or 'GSF')\n \nUpdate to Strategy and Capital Allocation\n Clear plan to deliver enhanced shareholder returns\n \nThe Board of GSF announces an updated strategy designed to deliver enhanced Shareholder value. Following a detailed review, the refreshed Board believes that energy storage represents an attractive asset class, but recognises that an evolution in strategy will better position the Company.\n \nKey Components of the Updated Strategy\n1. Enhanced Shareholder Distributions\nThe Company commits to distributions of 7 pence per share per annum, paid in four equal quarterly instalments of 1.75 pence per share. This will be funded through a combination of operating cash flows and selective asset sales. The first quarterly dividend of 1.75 pence per share in respect of the December-end quarter will be declared with the NAV announcement later this week.\n \n2. Disposals\nThe Company will divest certain operational and pre-construction assets, including the previously announced German asset, Cremzow, (which has attracted strong initial interest), and select pre-construction assets. Capital realised from asset sales, alongside operational cash flows, will fund distributions to Shareholders. A portion of disposal proceeds will also enable capital recycling into selective accretive investments. The strategy is expected to generate proceeds of £25 million in FY26/27, £75 million in FY27/28, and a further £75 million in FY28/29.\n \nCertain assets will be sold in a disciplined and orderly manner, while others will be augmented or constructed if shown to maximise value.\n \n3. Capital Recycling\nThe Company will pursue augmentations to increase the duration of the most immediately viable assets to enhance their value. Duration increases in markets such as GB and Ireland have been demonstrated to increase revenue potential and value. Post augmentation, assets will be assessed for sale.\n \nSelective partnerships may be formed through JVs t...