Gore Street Energy Storage Fund (GSF) CMD 2024 summary

Strategic direction and business model evolution

• Transitioned from a UK-focused, buy-and-hold, fixed-dividend model to a global, actively managed, storage-only portfolio with diversified revenue streams and modest leverage.

• Focus shifted from rapid growth to operational quality and cash generation, reflecting capital market constraints and higher interest rates.

• Portfolio now spans five uncorrelated markets (GB, Ireland, Germany, CAISO, ERCOT) with over 20 revenue streams and system durations tailored to market needs.

• Dividend policy changed to link payouts to cash generation, targeting 7% of NAV per annum.

• Maintains a low leverage strategy (c.15% of GAV), below peer average, to support stability in a merchant revenue environment.

Financial performance and portfolio growth

• FY23/24 revenue reached £41.4m, up from £39.3m in the prior year; operational EBITDA was £28.4m.

• Operational capacity grew to 371.5 MW (from 291.6 MW), with total portfolio capacity projected to reach 753.4 MW by March 2025.

• Portfolio is well-diversified by geography and service, with 85% of revenue from grid balancing.

• Cash or cash equivalents at £66.1m and gearing at 9.6% of GAV as of June 2024.

• Dividend target of 7% of NAV achieved for FY23/24, with policy adjusted to reflect merchant revenue profile.

Project pipeline, capital allocation, and future plans

• Sufficient funding secured to energise 753.4 MW, focusing on Big Rock (CAISO, 200 MW) and Dogfish (ERCOT, 75 MW), both on track for completion by early 2025.

• Over 500 MW of pre-construction assets under review for future buildout or potential sale, with flexible financing options including debt, vendor, or co-investor capital.

• Secured a 12-year, $14m+ annual Resource Adequacy contract for Big Rock, expected to contribute up to 40% of asset revenue and support project-level debt.

• Anticipates $60–80m cash inflow from US investment tax credits in 2025, enhancing liquidity.

• Ongoing evaluation of retrofitting assets to increase duration and capture additional trading revenues as capex falls.