Gore Street halts all construction of new assets due to COVID-19

Image: Gore Street.

Gore Street Energy Storage Fund has suspended all construction on assets currently in the works as it also announces the completion of Lower Road.

The 10MW front of the meter project in Essex is now fully operational and delivering storage and frequency services, Gore Street said. It is operating using Origami’s technology platform and uses NEC Energy Solutions and Nippon Koei supplied equipment and system.

However, work on four assets currently under construction is to come to a halt from the end of this week in line with government direction for public safety, it said.

This suspension of work is not expected to materially delay the expected operation dates due to the company’s “conservative construction schedules”, with the plan remaining that two projects will commence operations in Q1 2021 and two in Q3 2021.

All of its operational assets continue to function as expected, delivering a continuous source of revenue, Gore Street said. Its operational assets require minimal human intervention with no staff typically on site, therefore there is no significant impact currently.

It has also implemented a number of plans in light of COVID-19 such as remote working, technology distribution and online meetings, measures that Alex O’Cinneide, CEO of Gore Street Capital, said are “working well”.

“I have dealt with a number of market and environmental disruptions during my career, and we are applying the lessons right now.

“Obviously, we all hope for a rapid and conclusive end to the current health challenge, but I am pleased that we have been able to maintain the high level of service, financing, and market activity that Gore Street is known,” O’Cinneide continued.

The company also reaffirmed its annual dividend target of 7.0 pence per share, paid quarterly, in line with its operational portfolio performing and producing cashflow as expected.

“The income that our assets produce is neither directly impacted by either energy demand nor prices, as we principally sell hours of access to our projects for the grid.

“Furthermore, it is clear that the UK and Ireland will continue to develop significant sources of intermittent renewable power generation to meet international obligations to reduce global carbon emissions,” O’Cinneide said, adding that the requirement for Gore Street’s services will therefore “continue to grow”.

In February, Gore Street raised £3.5 million through a new placing of ordinary shares to fund its UK and international pipelines, as well as recently awarding NEC Energy Solutions both EPC and long-term O&M contracts for 100MW of storage in Northern Ireland.