GSF acquires 75MW of Texan storage

Jan 25, 2023 10:29 AM ET
  • The deal brings the Fund's portfolio to 973.2 MW in the United States as well as Europe
GSF acquires 75MW of Texan storage
Image: Gore Street

London-based Gore Street Energy Storage Fund (GSF) has consented to acquire a 75MW/150MWh energy storage project in Texas, USA.

Following this purchase, GSF's worldwide portfolio will include 26 projects with a total capacity of 973.2 MW in operation as well as construction across the UK, Ireland, Germany as well as the United States.

The project will be the Company's biggest purchase in the Electric Reliability Council of Texas (ERCOT) market to date and also brings the Company's total US portfolio to 144.7 MW.

The pre-construction project has actually safeguarded all land rights, grid connections as well as planning consents as well as is anticipated to be of two-hour period.

The grid connection is arranged for H1 2024, with commercial operations to commence soon thereafter.

Gore Street's financial investment supervisor, Gore Street Capital Limited, estimates the project will certainly have an unlevered IRR in the range of 10-12%, according to GSF's target.

Total expenditure on the project to commission is expected to be a minimum of ₤ 50m.

North America remains a key target for the Company.

The present governing landscape is becoming much more favourable, with the Inflation Reduction Act introducing policies sustaining energy storage deployment.

ERCOT is the grid driver for most of Texas as well as this continues to be a rewarding market due to the high penetration of renewables, creating a unique chance for battery storage, GSR said.

President of Gore Street Capital Alex O'Cinneide: "We are pleased to introduce this purchase in the high-growth market of ERCOT, US, adding to the Company's existing worldwide portfolio of energy storage assets.

" This is a continuation of ourdiversification strategyof lowering single-point risk while getting direct exposure to high-growth markets that demonstrate favourable attributes similar to the GB and also Irish markets.

" We see this unique geographical diversity in energy storage as increasingly beneficial to investors during the present political and economic climate."

Source:
renews.biz

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