UK’s Gresham House Energy Storage Fund plc (LON:GRID) expects GBP 3.2 million (USD 4.1m/EUR 3.7m) in revenue from the contracts secured by the company in the recently completed Capacity Market auction.
The energy storage fund won additional one-year contracts for a total derated capacity of 90.491 MW across 13 of its projects. The agreements are expected to yield GBP 3.2 million between October 2024 and September 2025, which sum is in addition to current revenue assumptions and is accretive to net asset value (NAV).
"We're pleased with these results from the latest annual Capacity Market auction, as well as their expected positive contribution to our NAV from 31 March 2024,” said fund manager Ben Guest. He added that the company can swiftly and remotely configure its software, without any physical changes, to tap a range of potential revenues available to battery energy storage, including both contracted income such as the Capacity Market auction results, as well as merchant, or trading, revenues.
The latest T-1 Capacity Market auction was completed on February 20 and cleared at a price of GBP 35.79 per kW, which, according to the fund, is slightly higher than expected. A total of 655.2 MW of battery storage capacity secured contracts.
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