Gore Street Energy Storage Fund has energised its last in-construction assets: Dogfish (75 MW / 75 MWh, in Texas) and Enderby (57 MW / 57 MWh, in Great Britain). This takes the energised portfolio capacity to its targeted level of 753.4 MW / 924.1 MWh. Taken together with the energisiation of Big Rock earlier this year, this represents a 79% increase in MW capacity. All assets are scheduled to be revenue-generating by end June 2025. The non-GB assets now represent 61% of the total energised portfolio on a MW basis.

Investment Tax Credits

While the Trump administration has taken action regarding the permitting of onshore and offshore wind, no action has been taken regarding the Investment Tax Credits (ITCs). External legal counsel has also advised that there has been no change to the eligibility of the company’s projects to qualify for the ITCs, and ITC applications will be filed as soon as possible. In addition, the manager continues to negotiate the sale of the ITCs; no change in market appetite or pricing from well-established ITC buyers has been seen, reflecting overall market confidence. [Once investors know this money is in the bank, the current 54% discount is going to look bizarre. A re-rating of the shares seems likely.]

The ITC proceeds will be prioritised towards delivering shareholder value. The board is actively assessing this matter and engaging with shareholders and the manager on their use. Options under consideration include returning capital to shareholders through mechanisms such as a buy-back programme, repayment of debt, investing in the portfolio, or a combination of the above.

GSF : Gore Street energises Dogfish, says tax credits are still on the table