The recent volatile prices in the GB energy market nearly doubled expected revenues for some assets owned by energy storage investor Gore Street Energy Storage Fund (GSF) in September. In a later update the fund said the doubling was achieved at two of its storage facilities.
In a trading update the company said September saw record power prices recorded in both the UK and Europe, driven by rising natural gas prices, limited gas storage capacity, low wind conditions, colder temperatures and increasing demand. The company said its “technologically advanced and responsive” storage assets “are well placed and capable of both filling needs in the UK and Irish markets and benefitting from the increased volatility”.
When prices in the UK Balancing Mechanism hit a record high of £4,038/MWh in early September several of the company’s storage projects began trading in the GB’s Balancing Market, with the result that September revenues for those projects were nearly twice forecast, had they relied on revenues from the Dynamic Containment service.
Alex O’Cinneide, chief executive of Gore Street Capital, the Company’s Investment Manager, said: “Gore Street’s portfolio of technologically advanced assets uniquely combined with our in-house expertise of engineering and energy markets, means that we are well positioned to capitalise on the highly attractive pricing available for our services, just as we did when we took first mover advantage and moved our GB portfolio into Dynamic Containment contracts during Q3 2020. We will continue to monitor closely the situation in the energy markets going forward over the winter months and shall optimise revenue stacking strategies to create additional value for our shareholders.”
Gore Street said there was industry consensus that there will be continuing volatility and high prices throughout the winter. This “is an important driver of trading opportunities in energy markets, which will benefit Gore Street as it is well-positioned to capitalise on the trading opportunities that the market currently presents,”.