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Gore Street Energy Storage Fund PLC on Wednesday touted the diversity of its energy storage portfolio, following the acquisition of a project in Texas, US.
Gore Street Energy is a London-based investment company focused on energy storage.
The firm has agreed to buy a 75 megawatt, 150 megawatt hour energy storage project in Texas, its largest acquisition in the ERCOT market to date.
ERCOT is the Electric Reliability Council of Texas, which operates most of the state’s electrical grid.
The acquisition brings Gore Street’s total US portfolio to 144.7 megawatts.
Gore Street’s investment manager estimates that the project will have an unlevered internal rate of return in the range of 10% to 12%, in line with the company’s target.
The pre-construction project has secured all land rights, grid connections and planning consents and is expected to be of two-hour duration. The grid connection is scheduled for the first half of 2024, with commercial operations to commence shortly thereafter.
Total expenditure to commission is expected to be a minium of £50 million.
‘We are pleased to announce this acquisition in the high-growth market of ERCOT, US, adding to the company’s existing international portfolio of energy storage assets,’ said Chief Executive Officer Alex O’Cinneide.
‘This is a continuation of our diversification strategy of reducing single-point risk while gaining exposure to high-growth markets that demonstrate favourable characteristics similar to the GB and Irish markets. We see this unique geographical diversification in energy storage as increasingly beneficial to shareholders during the current political and economic climate.’
Gore Street shares were trading1.1% lower at 109.40 pence each in London on Wednesday morning.
By Holly Beveridge; Alliance News reporter
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