An image of a Gresham House BESS. Image: Gresham House.
An image of a Gresham House BESS. Image: Gresham House.

Gresham House Energy Storage Fund has stated that the UK market is suffering from a “weak revenue environment” due to assets not being able to participate in balancing the GB grid or replacing gas-fired generation to their fullest capability.

Gresham House, which is listed on the London Stock Exchange (LSE) under the ticker ‘GRID’, this morning (1 February), provided a trading update on its activities and finances ahead of the publication of audited annual results in April.

It speaks of the company making some tough choices in the face of some industry headwinds and a recent sharp fall in its share price, mentioning that Gresham House’s board and fund manager, “are determined to take a proactive and disciplined approach to capital allocation”.

Nonetheless, Gresham House remains on target to reach 1,072MW of operational assets by the end of this year, from 740MW at the time of writing, and will extend the durations of some of its existing assets from 1.2-hour to 1.6-hour, which would be commensurate with a doubling of its present capacity in megawatt-hour terms, the fund said.

Although, the fund said there won’t be any fresh project announcements during 2024, with its focus being solely on the completion of projects from its 2023 pipeline. That 332MW of projects are already constructed and at the stage of completing works relating to grid connections.

Those projects and duration extensions at existing facilities will contribute to boosting Gresham House’s portfolio earnings, the fund said. It plans to deploy some of its existing £40 million (US$50.71 million) cash in hand to finance the capex required.

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