Gore Street Energy Storage Fund is to take a controlling stake in a portfolio of 160MW of storage in Northern Ireland and the Republic. The fund has committed £31m to the deal and plans to raise up to £50m via a share issue.
It is also set for a £30m investment from the National Treasury Management Agency, which Gore Street described as “transformational” to its aspirations.
The portfolio includes two 50MW projects in Northern Ireland and two 30MW projects in the Republic, which will cost around £77m to build. There is also an option to purchase a further 190MW portfolio which would take the total transaction to 350MW.
Gore Street said the deal was one of the largest storage acquisitions to date in Europe, and that the projects would deliver strong returns. It is working in partnership with developer Low Carbon.
“This represents a transformational development for Gore Street,” said Alex O’Cinneide, CEO of Gore Street Capital. “We intend to take advantage of the large and diverse array of opportunities that we see in our pipeline in the UK, Ireland and internationally.”
He added: “Ireland’s energy storage market is at a critical point in time, with significant investment opportunities rapidly arising, driven in no small part by the ambitious target of 40% renewable energy provision by 2020 set recently by the Irish State.”
O’Cinneide said anticipated returns from the acquisition portfolio “have the potential to be significantly greater” than the 10-12% set out in the company’s IPO prospectus.
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