Gresham House plc (LON: GHE) announced its intention to float a fund that will provide utility-scale Energy Storage Systems to the National Grid.
ESS are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK’s stated target to reduce carbon emissions.
Gresham House today announces its intention to launch Gresham House Energy Storage Fund plc.
The Fund will invest in utility-scale ESS in Great Britain that provides services to the National Grid to support grid stability as well as delivering the essential infrastructure required to enable Great Britain’s increasing reliance on intermittent sources of renewable energy such as wind and solar.
ESS will offer infrastructure and renewables investors a diversified and robust source of income, independent of renewables subsidies or the absolute level of power prices.
The UK already operates over 40GW of renewable energy which represented over 30% of total electricity generation in Q1 2018. This is set to grow to 50% by 2023.
This forecast growth in intermittent renewables increases the variability of power supply on the National Grid. ESS address this challenge very effectively by absorbing or releasing power. The transition to renewables can only continue with the support of effective ESS.
Rupert Robinson, Managing Director of Gresham House Asset Management, said: “We are excited to bring this opportunity to invest in energy storage systems to institutional and high net worth investors. What will set the Fund apart is the proven expertise of the management team in this highly specialist sector and the cornerstone investment of more than £30 million, from the management team and institutional investors. The seed portfolio comprises 70 megawatts (MW) across five fully operational sites. We are confident that we can deploy up to £200 million in a tangible pipeline within 12 months of IPO.”