Battery storage fund Gresham Home Power Storage Fund (LON:GRID) mentioned the closure of the UK’s final coal-fired energy plant delivered a lift to its revenues in October.
The agency, which is rising its portfolio of utility-scale operational battery power storage programs (BESS), mentioned it was “beginning to see a return of shortage pricing” within the electrical energy market after Ratcliffe-on-Soar, the UK’s final remaining coal-fired energy station shut down.
The UK turned the primary G7 nation to utterly part out coal energy on the finish of September, bringing to an finish a 142-year period of burning the fossil gasoline for electrical energy era.
Gresham Home mentioned it anticipated UK electrical energy costs to stay “risky” whereas NESO, the UK’s newly privatised electrical energy grid operator, undertakes “enhancements” within the balancing mechanism which high quality tunes the availability of power to the grid relying on demand and manufacturing.
Larger electrical energy costs is nice information for Gresham which mentioned the volatility was “encouraging”.
The agency mentioned its underlying portfolio generated revenues of £11.7m within the third quarter.
It added that the cash it makes from electrical energy storage continues to outperform the Modo BESS index, attaining on common 26% greater income figures throughout the quarter.
In a enterprise replace, the investor group mentioned: “October revenues improved on the again of elevated tightness (decreased extra provide) on the system.
“With the final coal fired era lastly decommissioned earlier this yr, which had created important extra provide over the earlier winter suppressing revenues additional, we at the moment are beginning to see a return of shortage pricing on days of low renewable era.
“This was highlighted by the primary Capability Market discover to be launched in virtually two years on 14 October 2024. As with earlier notices, this was later cancelled as soon as extra dearer era was introduced on-line however did result in considerably greater peak electrical energy costs.
“Service provider revenues are more likely to stay risky whereas NESO undertakes enhancements within the Balancing Mechanism, and it’s encouraging to see volatility of provide start to translate to volatility in system costs and therefore improved buying and selling spreads.”
Ben Visitor,Gresham Home Power Storage fund supervisor and managing director of Gresham Home New Power, mentioned the corporate has doubled its capability within the yr, due a brand new 50MW mission close to Leeds and to augmentations of battery storage tasks at Penwortham and Nevendon.
He mentioned: “It’s pleasing to see that whereas revenues in GB are bettering throughout the market, we’re sustaining our outperformance versus the competitors while delivering a extra diversified GB income profile.
“This underlying income efficiency, mixed with the elevated operational capability below administration, implies that the corporate stays on observe to outperform 2023 revenues this yr.
We’re additionally set to have energised ten new tasks and augmentations and to have practically doubled the operational capability of the portfolio via 2024, taking operational capability to 1,387MWh by the yr finish.
“This may enhance additional to 1,701MWh shortly after the yr finish with the conclusion of our present in building pipeline. The elevated operational capability transferring into 2025 provides us a a lot stronger footing for earnings era to help our goals.”
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