Gore Street Energy Storage Fund has revealed that its Irish portfolio generated an estimated £25.8/MWh during the quarter ending December 2023, £19 higher than its GB assets.
According to the fund, the combined Irish portfolio achieved this strong performance following a positive outcome throughout the Summer months. With December revenue having come in at an estimated £37.2/MWh, it noted that this was primarily due to strong and consistent wind in the nation.
Gore Street’s operational Irish assets total 190MW and includes the Drumkee (50MW), Mullavilly (50MW) and Porterstown (90MW) projects. It is worth noting that a Kilmannock (120MW) battery energy storage system (BESS) project is currently under construction.
In comparison, the company’s GB fleet, which excludes its 79.9MW Stony BESS, only generated £6.1/MWh. Interestingly, Gore Street explained that the highly-anticipated reforms to the balancing mechanism, originally scheduled to begin in December, are yet to make an impact on revenues. Gore Street’s GB assets amount to 109.7MW, excluding its Stony asset.
The fund’s Ferrymuir project, a 49.9MW BESS, is still on course to achieve its energisation target of the end of January 2024.
“Poised for significant growth”
With many projects coming online for Gore Street during the quarter, driving a 27% increase in its operational capacity, this capacity has now reached 372MW. It also noted that it remains on target to achieve an operational portfolio exceeding 800MW by the end of 2024.
Commenting on Gore Street’s results, Alex O’Cinneide, CEO of Gore Street Capital, said: “Looking ahead, we anticipate the company’s most pivotal year yet with operational capacity scheduled to expand to over 800MW, including 200 MW coming online in the company’s fifth market to date; potential capital recycling; and a strengthening dividend cover from a diverse source of revenue streams.
“The company is poised for significant growth and we look forward to updating the market regularly as these plans progress.”
Although one may be concerned by Gore Street’s GB results, this is expected across the board for battery storage owners, with Modo Energy analysis revealing that the average BESS revenue for the balancing mechanism fell by 16% in December to £2.5k/MW.
Interestingly, Modo’s research indicated that assets over 1.5 hours in duration earned around £3.3k/MW on average, whereas assets under 1.5 hours saw revenues of around £2.1k/MW.
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