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Gresham House Energy completes 49MW Red Scar battery storage investment

Gresham House Energy Storage GRID

Gresham House Energy Storage Fund (GRID) has announced has completed its investment in the 49MW battery-only project known as Red Scar. The Project, which is located on the Red Scar Business Park, by the Longridge Road and the M6 outside Preston, was acquired for a total enterprise value of approximately £32.8m (inclusive of £1.0m of deferred consideration, payable in 12 months, subject to the Project achieving EBITDA targets). This is one of the exclusivity portfolio projects identified by the Company in its IPO prospectus published in October 2018.

About Red Scar battery storage project

Grid says that the Red Scar Project is connected to the distribution network and the “G99” commissioning tests have been successfully completed; the project was handed over on 31 December 2019. The Red Scar project generates its revenues primarily from asset optimisation (whereby it imports and exports power in order to earn income from the wholesale market and the National Grid-administered Balancing Mechanism). The Project has been acquired from a vehicle owned by Gresham House DevCo Limited and Noriker Power Limited (together, the “Developers”).

Current Portfolio

The acquisition increases the total capacity of operational utility-scale battery storage projects in the Fund’s investment portfolio to 174MW. This is summarised in the following table:

Project Location MW
Staunch Staffordshire 20
Rufford Nottinghamshire 7
Lockleaze Bristol 15
Littlebrook Kent 8
Roundponds Wiltshire 20
Wolverhampton West Midlands 5
Glassenbury Kent 40
Cleator Moor Cumbria 10
Red Scar Lancashire 49
Total 174

Three more projects in the pipeline

Following the completion of the Red Scar acquisition, the Fund expects to acquire a further three projects in the coming months after they have been commissioned and become operational. These three projects, two of 50MW each and one being the Littlebrook extension of 5MW, will increase the Fund’s total operational portfolio to 279MW. It is currently possible that commencement of operations of the two larger projects moves into early Q2 2020 if winter conditions prove unaccommodating to a smooth construction and commissioning process.

Three more projects in the pipeline

Following the completion of the Red Scar acquisition, the Fund expects to acquire a further three projects in the coming months after they have been commissioned and become operational. These three projects, two of 50MW each and one being the Littlebrook extension of 5MW, will increase the Fund’s total operational portfolio to 279MW. It is currently possible that commencement of operations of the two larger projects moves into early Q2 2020 if winter conditions prove unaccommodating to a smooth construction and commissioning process.

About Gresham House Energy Storage Fund Plc

Gresham House Energy Storage seeks to provide investors with an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility-scale operational energy storage systems, which utilise batteries and may also utilise engines, located in Great Britain.

Gresham House Energy Storage will invest in a diversified portfolio of utility scale energy storage systems (‘‘ESS Projects’’), which utilise batteries and may also utilise generators. The ESS Projects comprising the portfolio will be located in diverse locations across Great Britain. Individual projects will be held within special purpose vehicles into which the Company will invest through equity and/or debt instruments. It is intended that each ESS Project Company will hold one project but an ESS Project Company may own more than one project. The company will typically seek legal and operational control through direct or indirect stakes of up to 100 per cent. in  such ESS Project Companies, but may participate in joint ventures or co-investments, including, without limitation with other investors or entities managed, operated or advised by the Gresham House Group, where this approach enables the company to gain exposure to assets within the company’s investment policy, the like of which the company would not otherwise be able to acquire on a wholly-owned basis. In such circumstances the company will seek to secure its shareholder rights through protective provisions in shareholders’ agreements, co-investment agreements and other transactional documents.

You can access the company’s website here

2 thoughts on “Gresham House Energy completes 49MW Red Scar battery storage investment”

  1. Has the company any plans to get involved in any sites in South Wales. I have a potential site in the Vale of Glamorgan.

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