Gore Street Energy Storage Fund PLC (LSE:GSF) told investors it has successfully completed the acquisition of a 90% stake in a 28 MWh operational energy storage asset based in Cremzow, Germany.
The company, in a statement, highlighted that the acquisition of an asset in mainland Europe signifies an exciting opportunity. It said the asset diversifies its exposure to new revenue streams across the inter-connected European grid network.
Cremzow has been operating since 2019, providing balancing and frequency services across eight countries and eleven networks in the European grid system. The company noted that Cremzow can participate in wholesale and intra-day arbitrage, presenting additional revenue stacking opportunities.
The intent by the EU to diminish co-dependency on gas and other fossil fuels, reinforced by the current Ukraine crisis, will likely further enhance the already pressing need for energy storage infrastructure in the region, Gore Street noted.
Alex O'Cinneide, Gore Street Capital chief executive, said: "The company has, as part of its growth plans, achieved international expansion firstly in 2019 with our move into the Irish energy system, and now in 2022 into mainland Europe.
“This is a landmark acquisition with compelling fundamentals which not only demonstrates our entry into new markets but also increases our operational cash generating assets, and further diversifies Gore Street's portfolio.”
He added: “Energy storage is an ever-increasing infrastructure requirement, and we will continue to seek out the best opportunities from our considerable pipeline across our key markets."