Gresham House Energy Storage Fund

Focused on revenues and project completions

20 May 2024

Gresham House Energy Storage Fund (GRID) invests in utility-scale battery energy storage systems (BESS) in Great Britain. GRID and its peers saw sharp share price falls in H223 and early 2024, due mostly to an unexpected decline in revenues and the slower-than-expected utilisation of BESS by the UK’s Electricity System Operator (see our last note). In response to these events, GRID’s manager, Ben Guest, and its board have refocused the company’s use of capital and are now concentrating on maximising cash generation, completing GRID’s near-term project pipeline and reducing debt. GRID’s revenues have already begun to rise and are expected to improve further as new and extended projects come on line and structural changes within the sector play out. Investors may need to be patient while these measures, and improvements to the National Grid’s energy trading platform, take full effect, but the fundamentals of the BESS market are strong, suggesting GRID’s longer-term prospects remain positive. MORE »

Responding to challenging times

5 February 2024

Gresham House Energy Storage Fund (GRID) is the largest UK fund investing in utility-scale battery energy storage systems (BESS). A recent sharp decline in gas prices, a ‘disappointing’ start to the Energy System Operator’s (ESO’s) new energy trading platform and systemic delays connecting completed projects to the national grid have raised concerns about the revenue generating capacity of the BESS sector. This has placed significant downward pressure on the share prices of GRID and others in the sector. GRID’s share price has declined by more than 50% over the past month and is trading at a 67% discount to its last published NAV. A recent trading update by GRID’s manager, Ben Guest, provided details of the company’s response to these challenging market conditions, while also reiterating confidence in GRID’s positive long-term prospects. MORE »