Investment trust insider on GRID’s tie-up with Octopus – James Carthew: Could Octopus stretch to a bid for battery funds?
Following a ‘landmark’ deal with Gresham House Energy Storage, Octopus could do the same with for-sale Harmony Energy as its next contract in two years.
Life in the investment companies sector continues to be eventful. In addition to the new issues that I discussed last week, it looks as though we have another bid on the way – this time for Tritax Eurobox (EBOX) – and more could be in the offing as Harmony Energy Income Trust (HEIT) suggests that it is open to a bid for its entire portfolio.
Harmony has been hit hard by disappointing revenues from its battery energy storage assets in the UK. This problem has impacted all funds with exposure to the sector. It took 1.6p off the end-march net asset value of JLEN Environmental Assets (JLEN), for example.
I wrote about this back in February. Since then, the problems the industry was experiencing with the National Grid electricity system operator (ESO) seem to have eased a little, but as I said then it will take time before the UK’s battery storage assets are being used to their full potential.
Gresham House Energy Storage (GRID) said in April that its revenues had picked up, but that was largely down to more volatile intra-day power prices, as the volume of renewable energy being generated fluctuates with the prevailing weather. That will not necessarily last, but the battery fund is optimistic on this as an ever-greater volume of renewable energy generation comes on stream.
Now, however, GRID appears to have identified a medium-term fix for its revenue problems… read more here