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To provide an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility scale operational energy storage systems, which utilise batteries and generators, located in Great Britain.
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Given all the talk about Britain going green of late, it's interesting that this hasn't budget any. Wonder if it's cause GRID still isn't on most peoples radar? Maybe cause it's not a regular stock, so when PIs go to buy and get a warning message they pause and back out? Perhaps cause NAV took a slight drop due to construction delays? Perhaps cause folks don't do research and expect forward divis to be based on last years' numbers, not realising that it's at 7p per annum already? Or perhaps there's still a lingering fear about a potential raise going forward?
Whatever the reason, it's interesting that it's not budged in the slightest, whereas you have a play like IES that went through the roof (obv' i know that they're different styles of play, but both battery storage non-the-less).
Ah well, still looking forward to 6 months down the line. Expecting this to be nearer 120 on the posting of the annual report with a maintained divi of 7p (provided no more delays). Has gotta be one of the safest plays out there at the moment
This opens up the balancing mechanism for GRID (which means more revenue perhaps)
https://www.nationalgrideso.com/news/new-it-interface-widens-balancing-mechanism-access-smaller-generators?utm_source=twitter&utm_medium=social&utm_campaign=balancing_the_grid&utm_content=article
Very clear position building here with regular 90k buys going through every couple of days. GRID has always been a bit of a no brainer to me, especially since they went for debt financing over equity raise the other month. As mentioned in previous post, 130p is personal base target. Rationale for this being in comparison to other ESG plays with similar dividend policy. The rate of progression to get there being determined by broader market acceptance towards battery storage as a concept. I had thought 5 years should be a safe target... With the broader uncertainties in market, we might even see that being achieved within 18 months. Why? (a) High and STABLE dividends are few and far between. V attractive as part of any defensive strategy. (b) Only reason for still putting this back to 18 months is because too many people base research on historical data - AKA financial reports - alone, and fail to see that a company may already have/be close to having achieved a certain NAV/performance.
Eitherway, still staying here. Decided not to add more at the low prices because didn't want to go too overweight into a single stock. Double digit %age holding in a single play is already enough! Arguably, may need to offload a few when we get to 130 and re-balance portfolio
Have noticed some large trades of 300-400k each during the past few days. Am personally assuming that they're mostly buys following the investor call last week - which was v positive. Recommend watching it if you've not already: https://www.brighttalk.com/webcast/16727/401110?utm_campaign=google-calendar&utm_source=brighttalk-embed&utm_medium=calendar
7p dividend for 2020 is reaffirmed. H1 payments are taken out of existing cash, with H2 payments taken from profits. Potential for a fundraise later in the year for a new Scottish project, but otherwise, am expecting NAV to rise on confirmation of other projects coming online that'll double storage space within the next few months.
There was good discussion about why the SP is behind other ESG energy plays. Parallels made with Solar and how it took a few years for those to rise. Personally, I expect 2021 to be transformational for the MC here. SP always lags as funds wait for the financial reports before getting in.
The Tesla reference below (thanks Tomo) is interesting also. I expect that they'll be looking more at charging stations for EVs. i.e. developing the infrastructure to support sales of their main vehicle. However, having big names like Tesla enter the market helps raise profile of overall battery storage sector
Still anticipating around 130p within 5 years based upon pipeline growth and strong dividend. Would like to see return to 110p though upon news of next 3 projects coming online and payment of both H1 divis
There was an interesting article in the Times yesterday regarding Elon Musk applying for a license to generate electricity in the UK. His company doesn’t intend to get into the generating side of the industry but to build a network of batteries to store power generated by solar and wind. Seemingly you have to hold the license if you intend to supply , say, The National Grid even though it’s from a storage source.
As well as industrial size battery installations which he refers to as Powerpacks he is also looking at domestic batteries called the Powerwall which when harnessed together can provide meaningful amounts of energy at times of high demand.
Question is will he be looking to build up his own mega batteries from scratch or consolidate existing plants.
Also, could this be another outlet for generators such as Next, Bluefield, Foresight, UKW and TRIG who are feeling the pressure over long term prices
If I was more savvy with the interney and computers in general I would have copied and pasted or at least put a link up but a quick google should do the business.
Beginning to move here - albeit slowly.
I sent an email to investor relations last week. A Ms. Catriona Buckley was very quick to reply and mentioned that we will receive an update shortly...
From my calculations, GRID has 174 MW operational at the moment, with an additional 100 MW that us supposed to be due any time around now. It's the timeline on this 100 MW that is going to determine the performance of GRID this year. They've also got another 50MW already commissioned project that they said they're looking to acquire (17th Feb RNS). Would also be good to hear an update on how due diligence is progressing there.
Truly, 2020 will be a transformational year for GRID, but increasingly likely that 2021 is going to be the year when that transforms into SP growth. Guess now's good time to buy before the rise?
Coincidentally a huge non hazardous waste incinerator was given the go ahead late November on the Red Scar Industrial Estate. This will burn up to 395,000 tonnes of waste producing low carbon energy and the electricity will be available to other businesses on the estate by a ‘ private wire’
Costing up to £200 million, work has commenced and is hoped to be operational early 2021.
Surprised that there hasn't been an update Re: impact of coronavirus on business. Personally, I interpret that a bit negatively. The game changer here is to do with Wickham, Red Scar and Thurcroft being commissioned in Q1/Q2 2020. RNS was received saying that Red Scar acquisition was completed early Jan, but can't remember seeing anything since - or any mention of the other 2.
Without this, doubling production and dividend doesn't seem too likely this year. And with Chinese supply chains having been shut down since Jan, followed by our restrictions here, we could be in for some long delays for project finalisation.
Worst case scenario is probably a delay of say 9-12 months? Other ESG funds in energy paying out approx 7p dividend on a 1GBP NAV typically go for a 20-30% premium (pre-virus and hopefully afterwards also). I would like to target that for 2 years from now... Other limitation here is that it's not PI friendly due to use of derivatives. Makes it more fund or professional investor type share which can limit liquidity and movement. Not a big issue, but don't anticipate it ever getting to the same PE as other ESG funds
Interesting article from US: https://www.greentechmedia.com/amp/article/woodmac-distributed-storage-outlook-shrinks-for-2020-due-to-coronavirus As mentioned above, if development is not done already, anticipating delays like US is seeing for the sector
+ Major Holdings RNS announcements on 9th March from Schroders and Close Asset Management (amongst others) - both making large initial investments in GRID. And another RNS today -
"Gresham House Energy Storage Fund plc (LSE: GRID) has conditionally agreed to acquire a 50MW battery project located near Thurcroft, to the east of Rotherham ("Thurcroft") (the "Project"). The Project will be GRID's largest project to date"
I'm already in, but if I wasn't, I would be buying.
I see no chance of a reduction in electricity demand. Many businesses are effectively being mothballed plus social distancing (and self-quarantining) equates to many, many more people at home. There is already evidence of this - Netflix is reducing the quality of streaming so networks can cope. Youtube too. People are at home using their computers/laptops/TVs/heating/lighting/kettles/etc. Electricity demand will be going through the roof.
Usage of electricity is residential commercial and industrial. There will be a reduction in demand overall in my view.
Surely now the demand for energy in Grid is at an all time high. Selling energy into the Grid will command a higher price. Earnings from existing units would significantly higher. Need to understand the balance sheet but the fund should be cash positive with unprecedented income. Id call this a relatively safe place to park some capital. Where am I going wrong?
No idea, sorry. I bought mine via AJ Bell. And I believe IG and HL also allow trading in GRID. Time to get yourself another broker?
NOT not mot - sorry ......clearly I am an idiot
I hate to look an idiot, but here goes..........Can anyone explain why none of the three brokers I use (FD/BI/II) will mot allow trading in GRID?