Investment Trust Insider update on battery storage – James Carthew: battery funds back renewables revolution
A few weeks ago I looked at Gresham House Strategic (GHS). This week, it is the turn of Gresham House Energy Storage (GRID), a £100 million new issue in 2018 and the second energy storage fund to list after Gore Street Energy Storage (GSF).
GRID is managed by a team led by Ben Guest, who joined Gresham House (GHE) in November 2017 when the alternative asset management group bought his Hazel Capital business. Guest was already managing a couple of venture capital trusts (VCTs) focused on renewable energy and investments in energy storage.
Battery storage projects have become viable as the price of batteries has fallen. Huge growth in this market is being driven by the growth of the electric vehicle industry. Lithium-ion battery production is increasing almost exponentially as initiatives such as the Tesla Gigafactory become reality.
Battery storage projects can benefit from a variety of revenue streams. The two most important are mutually exclusive. Either the storage project can seek to facilitate trading in the short-term power market or it can be used by the National Grid to help balance the frequency in the transmission network.
The UK power generation market is undergoing dramatic change. All coal-fired plants are supposed to shut by… read more here
GRID / GSF : Investment Trust Insider update on battery storage