Gore Street Energy Storage Fund PLC (LSE:GSF) said its portfolio of renewable energy battery storage assets performed better than expected during the last quarter of its fiscal year.
The investment company said the portfolio is “performing strongly” on every grid in which it operates, Great Britain, Ireland, Germany, and the US and the new financial year has “started well”.
Alex O'Cinneide, chief executive of Gore Street Capital, said the investment manager was pleased to see the GB portfolio matching the same levels of revenues with other market participants with longer battery durations.
"We continue to base our strategy on current market conditions and revenue streams and therefore continue to favour one-hour battery systems for the GB market. We believe this results in substantial cost efficiencies and has significantly rewarded our shareholders."
In Northern Ireland, the company has opted for sub-30-minute duration batteries, which allows it to deliver six ancillary services under DS3 uncapped contracts, and these delivered strong performance for the quarter, while in Texas, US, where it said there are different market dynamics and revenue mix, the opportunity was taken to acquire assets with 2-hour duration, "which allows the company to capture trading opportunities, as and when they become increasingly prominent in the ERCOT market, alongside current lucrative ancillary services contracts".
O'Cinneide said the group's assets "offer important flexibility to participate in multiple attractive revenue streams, including trading. At times of material market price dislocation, this is a highly profitable use for the company's portfolio, which is ready to participate when ideal market conditions become available."