Britain’s biggest specialist investment fund focusing on power storage posted sparky earnings today.
Gresham House Energy Storage Fund (GRID) anticipates converting 80% of its current project pipeline this year into operational capacity, targetting 1GW as its year-end working portfolio.
Highlights from 2022’s audited results include:
- Pipeline of yet-to-be built storage facilities grown to 2GW
- £150 million of gross new equity, 50% up on 2021’s funds raised
- Lengthening to £335 million lines of credit from lenders, 86% up on 2021
By this January, the fund was earning fees from 550MW of new operational storage, a rise in twelve months of nearly 30%.
Eight more projects in ample amp accommodation are expected to be lit this year, adding 477MW of new operating capacity. As new sites begin construction, ground will be broken on an expected 670MW more.
After full year 2022’s books were closed, 2023’s first quarter saw one 40MW project added to the fund’s working roster. After delays in achieving grid connection, two 50MW ventures at West Didsbury and Penwortham are said to be close to being commissioned.
With a claimed share of 30%, chairman John Leggate’s operation believes it is Britain’s market leader in UK battery investment. Today’s figures beat the management team’s own budget expectations for 2022.
This year’s working target of 1GW will be surpassed, GRID told its backers, with 1.5GW achieved by the end of next year.
The fund’s technologists are aiming for longer working life for its batteries, to seize growing opportunities to trade electricity, the company told investors.
Newly awarded Capacity Market contracts and at least one portfolio revaluation are expected to add significantly to 2023’s asset growth, it said.
“Following GRID’s strong trajectory in 2022, the company has set its ambitions higher going into 2023, chairman John Leggate CBE assured its investors.
Early birds who participated in the fund’s initial public offering in 2018 have seen their money grow 17% per year, annualised.
The fund recruited in 2022 to deepen its involvement in grid connection processes, Ben Guest, fund manager at GRID and managing director of sister company Gresham House New Energy said.
“We are very excited about 2023 as we drive portfolio and NAV growth from projects in construction becoming operational,” Guest went on. “We continue to build our international pipeline and explore incremental opportunities to deliver revenue from the company’s portfolio”.
GRID expects to raise its 2023 dividend by 5%, to 7.35p per share. More details here.
By late morning the fund’s shares had risen 1.15% on the LSE’s main market.