Gore Street Energy energises remaining in-construction assets

(Sharecast News) - Gore Street Energy Storage Fund announced the successful energisation of its remaining in-construction assets on Monday, marking a significant step in transitioning to a steady-state portfolio. The company said its portfolio now boasted a total energised capacity of 753.4 megawatts and 924.1 megawatt-hours, representing a 79% increase in capacity including the earlier energisation of its Big Rock asset in California.

It said the recently-energised assets, Dogfish in Texas and Enderby in Great Britain, contributed to a portfolio where non-UK capacity now accounted for 61% of the total on a megawatt basis.

All assets were expected to become revenue-generating by the first quarter of the financial year ending in June 2026.

In addition to the portfolio milestone, Gore Street Energy updated the market on its investment tax credits.

Despite recent actions by the Trump administration on permitting for onshore and offshore wind, external legal counsel confirmed that there had been no change in the eligibility of the company's projects to qualify for ITCs, with applications to be filed shortly.

The investment manager was actively negotiating the sale of the credits, with market appetite and pricing reportedly stable.

Its board said it was now assessing options for deploying the ITC proceeds in a manner that maximises shareholder value, including potential capital returns, debt repayment, or further portfolio investments.

"I am pleased to announce the successful energisation of the Dogfish and Enderby assets in Texas and Great Britain - this milestone represents the completion of all four key deliverables outlined to investors during the company's 2024 annual results," said Dr Alex O'Cinneide, chief executive officer of the company's investment manager, Gore Street Capital.

"These deliverables included securing the resource adequacy contract for Big Rock and the energisation of the three in-construction assets - Big Rock, Dogfish and Enderby - totalling 332 MW.

"This increase in energised capacity places greater importance on active management to maximise the portfolio's revenue generation and asset uptime."

Dr O'Cinneide added that the monetisation of the investment tax credits was progressing well.

"The company has set itself apart with a diversified portfolio across five markets, supported by a strong operational track record.

"While we remain cognisant of the broader sector challenges and the distressed nature of our peer group, the company has differentiated itself through a strategy that avoids the risks inherent with a single market concentration by utilising the appropriate amount of debt, minimising capex and through active management."

At 1104 GMT, shares in Gore Street Energy Storage Fund were up 2.92% at 47.65p.

Reporting by Josh White for Sharecast.com.