Energy storage investment fund to raise £100m on London Stock Exchange
The world's first listed investment fund targeting energy storage developers and projects is attempting to raise £100m after floating on the London Stock Exchange.
Gore Street Capital will invest into large-scale facilities and the production of lithium ion batteries to help spur the growth of the global energy storage sector. The company is targeting annual dividends of 7% for each share.
The fund’s founder Alex O’Cinneide is hoping to provide services that are critical in solving grid-related risks around supply and demand and the integration of intermittent renewable sources like wind and solar. More than £14m has already been committed.
Gore Street Capital expects that energy storage will play a prominent role in balancing frequency management services that can stabilise grids and add flexibility to the electricity market. Bloomberg New Energy Finance (BNEF) predicts that the market for energy storage will double six times between now and 2030.
Commenting on the announcement, battery developer Eaton’s distributed energy segment manager Louis Shaffer said: “Beyond the growth – and falling costs – of cleaner and more cost effective energy sources, there has also been a clear shift in how investments in renewable energy and energy storage are viewed.
"It’s not a “tree-hugging” exercise for these investors – it simply makes good, plain business sense. The news that Gore Street – the world’s first listed investment fund to focus solely on energy storage – has today floated in London raising £100m demonstrates the extent to which green finance is becoming a routine part of many investment decisions.”
Eaton anticipates that more major financial institutions and investors will focus on renewable energy and battery storage this year, citing “stable returns” as an incentive.
Earlier this year, for example, banking firm Santander became one of the first senior debt lenders to provide financial support to the energy storage sector, backing an independent UK battery developer with a £28.5m funding investment.
Santander will invest £28.5m into UK-based Battery Energy Storage Solutions (BESS) to assist with the construction and operation of a grid-scale energy storage portfolio that is expected to reach a 100MW capacity by the end of 2018.
Energy storage provides grid stability during electricity outages and reduces the need to import electricity via interconnectors. For businesses, meanwhile, the technology helps to maintain reliable supply, reduce wastage and save money.
But how does energy storage work? What are the business benefits of commercial battery systems? And how can they interact with other onsite energy technologies? This free edie Explains guide gives you everything you need to know.