Gore Street Energy Storage Fund (GSF) has announced that it has agreed to acquire from Kona Energy a 200MW construction-ready energy storage project in Heysham, North West England. The project is one of the largest storage projects in Europe and GSF’s largest acquisition to date. With this acquisition, GSF’s portfolio will consist of 25 projects with a total capacity of 898MW in operation and construction in the UK, Ireland, Germany and the US. The project has secured all land rights, grid connection and planning consent and will connect to National Grid’s main transmission network rather than the local distribution network. Grid connection is expected to be no later than Q4 2026; however, GSF’s Investment Manager, Gore Street Capital Limited, will seek to accelerate the connection date while maintaining a cost-efficient EPC procurement process. The final capex will depend on the selection of the system duration but it is expected to deliver an unlevered IRR at least in line with GSF’s target return.
Alex O’Cinneide, CEO of Gore Street Capital Limited, commented: “With the acquisition of this landmark 200MW transmission-connected project from Kona Energy, our largest acquisition yet, the Company has further strengthened its leadership position in the GB market. We are encouraged that an asset of this scale will benefit from being connected to the main transmission network, providing attractive running cost savings and potential additional revenue streams. We remain very selective on new acquisition opportunities focusing on those, such as this project, with significant cost and revenue advantages.”
[We are encouraged by GSF’s recent acquisition. Not only does it demonstrate the potential scale of the trust, given its size, but it also helps to improve GSF’s position, as it increases its capacity prior to what may be a very painful winter for UK households, given the clear headwinds facing energy production]