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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Started: unhooked, 5 Jun 2024 08:34
Last post: JTS13, 10 Jun 2024 16:51
Ticking over is better than being missed out entirely. As indicators are that the balancing mechanism won't be fully efficient for another year plus, guaranteeing revenues at above recent rates ( acknowledging those are depressed) whilst providing potential upturn for the other half AND the pending new supply is favourable. At the minimum, it avoids any development delays. Ideally, it'd enable return of the dividend, though I'm not holding my breathe on that
Apart from the big question - what price is the toll at?
Most price points were coming in at £30-40/MW for 1-hour and £50-60 for 2-hour. Most of the fleet is in the 1-1.5 hrs range, chances are this isn't going to be that beneficial it will just be keeping things ticking over for the next couple of years.
The pieces are falling into place for an excellent turnaround story...
Started: Howtofish, 24 Apr 2024 10:31
Last post: Pedrobull, 13 May 2024 19:42
And still rebounding
I think GSF has to do the same as GRID. Must postpone the dividend, which is not sustainable. GRID has rebound 50% from 38p to now now 57p since the announcement.
Pricing data is publicly available to anyone through a platform called modo. Taking 15 days of slightly improved revenues is a dangerous game. The improved revenue is no indication of future performance.
Today's announcement does explain the spike the other day though. Clearly insiders, or IIs with access to pricing data somewhere
I can't imagine we'll see a div for a year, guess they've a lot of capx to get done, hopefully the revenues will continue to increase
Started: dadean, 22 Apr 2024 16:43
Last post: dadean, 23 Apr 2024 17:00
Thanks JTS, interesting, volumes picking up, on ig it looked like the spike reached 60p but surely that's not possible, well holders will be relieved with increase past few days
Do you think the nav accurately reflects the current battery values? I am also unconvinced that income will grow as forecast?
Huge spike this morning, so must have been a buy, or a short exiting.
Re: Nav, can't remember wording, but it was clear that NAV discount calculations didn't reflect current conditions
Wonder if they were buys? Bought a little more of this, this morning... As people say, not investing advice, but the discount to nav, and with the decent management business behind them, this could recover very significantly from this point in the next 2 years
Started: SageOfOmagh, 18 Apr 2024 15:37
Last post: Temple_of_Doom, 19 Apr 2024 08:41
Johnson did what he does best - Tell lies. It's not as if there were not clues before 2019. It is what it is - But what is happening to the UK energy market out of the EU is a travesty.
We have Badenoch celebrating UK has a gas hub with record imports of non EU gas and exports of non EU gas to the EU in 2022 at record high prices boosting trade figures and calling it Brexit success.
Some Brexiters might be dumb enough to buy the lie, but the rest of the world is not so stupid - and neither am I.
Not forgetting circus master, Boris...
"Annoying how our pension funds go to the States" Why? Pension funds have a duty to pension contributors - like Utilities have a duty to shareholders in buying foreign assets to boost earnings. The Tory government is desperate for people to buy in and support UK stock markets - but the rest of the world is looking at Brexit Britain and saying no chance right now.
Why would pension funds be any different? Blame Farage, Rees-Mogg, Odey and thge rest of the Brexit crowd for lying through their teeth about Brexit and then going short UK.
That makes more sense
Yes. BESS should be backed by Gov strategy, and the new UK pension scheme should also view GRID and such options as attractive UK funds/shares. Annoying how our pension funds go to the States
"Thought u said "out as of now"...?"
Errr .... is this afternoon the same as this morning? I have zero shares now ... seriously a shame .. I like the business idea ... and annoys me that these problems are down to UK government dithering.
But money is money ... I don't like holding shares without a return.
Anyone found any info on shorts here?
Buybacks have done absolutely nothing the past week or so, with SP only continuing to drop. Must have a big shorter here, but haven't seen any data to verify
Started: dadean, 16 Apr 2024 08:23
Last post: Temple_of_Doom, 18 Apr 2024 14:07
As close to a profit warning as one can be .. only a few in here .. out as of now.
Thanks Mkx cheers for that, I'm confident the div will be reinstated, their revenue really going to increase this year as additional sites go operational, not to mention other possible drivers of improvement in regulatory environment
About right for a 1 hour. There are many variables, and you get economies of scale too so 5 mw will cost more than a 50 mw on a £/mw basis. 2hrs is close to £750k/mw but both are coming down with prices of battery cells dropping quickly
Thanks mks, say 1 hour? Not found anything usable yet, saw some random note of 500k per mw but I thought that a bit low....
Would depend on the duration...
They are not short of cash judging by the daily buy backs.
They need to forget about dividends continue buy backs and reduce debt. Possibly a sale if they can get a decent price.
Started: PaulCurtis, 1 Apr 2024 19:35
Last post: jonathb, 12 Apr 2024 12:42
PC: ".. exposed to reducing battery prices and improving storage capacity."
- .. this worries me slightly and I don't see it discussed anywhere. The new battery tecs that will show up over next couple years mean that altho the sector will get huge demand bump, prices fall + there will be a huge capital appetite. I can only hope that by then the current capital drought has gone away. BTW I saw recently some new player just committed 10 Bil GBP to new BESS build-out, can't find the link just now.
I suspect the reason such a straight forward set of accounts is in to the fourth month after year end has probably a lot to do with the going concern statement from the auditors which in turn is a function of the structure of the external bank debt, the £110M which was increased by £50M during the half year . £110M at 8% needs £9 m just to pay interest and whatever amortisations are required are extra. When you are doing only £20M of revenue in 6 months and prices are declining rapidly its a tough position to be in. National Grid better gets its act together. Ridiculous really that they could kill this important business initiative because of inefficiency. Never be reliant on Governments or civil servants until they are in crisis mode and then they are lambs to the slaughter.
Interesting article. If the price at end 23 is one third of where it was in 22 than my back of the envelope is too high for now and the share price could half again from here ie by not making the double assumption I did to see where the market was at. It doesn't mean it is out of business it is just a reflection of the poor cash returns from such a high accumulated capex spend at current pricing levels. As they only have £110M external bank debt as most of the debt is intercompany from the plc to the operating entities and they can capitalise this interest but that of course is the reason the div was cancelled and will be for 2024. They raised over £600M in equity and it generated £20M revenue or £13.8M ebitda in the first half of 2023. Think market valuing it at £230M odd is being nice. It could get much uglier. Think they should try and sell some of smaller units if they can get a reasonable price just to build their cash reserves. The £110M bank loan will want its interest in cash and so GRID don't want the lenders getting nervous. Think its led by Santander.
The underlying EBITDA is 13.8M for half year with external interest 4.4M that's 9.4M EBT. Take off tax at 25% and EAT is 7.05 for half year say 14M for FY. Double it for the capacity increases etc and all initiatives they are working on and for now value as a perpetuity at 12% and you get £235M, the current market cap. Until there is more information this basic DCF approach justifies where we are at albeit with a doubling of the underlying P&L account and the value of a perpetuity without further investment which is unreasonable. Market isn't being unreasonable just working with what it knows at moment in a high level way.
Started: unhooked, 25 Mar 2024 11:42
Last post: unhooked, 4 Apr 2024 16:16
Interesting how HEIT has had a good few days while GRID continues to fall.
Heck, throwing caution to the wind I've bought a few in the hope of recouping an imprudent gamble on the Scotch mist gold mine!
Although loathing the mnemonic passionately - GLA but especially me!
Tiny uptick at lunchtime today. About time too! Could it herald better times ahead?
The company does seem to be a little tardy with announcements and updates posted on the investor section of their website. Is there something we should ne reading into this?
Right, this is priced as if their going to significantly cut balance sheet + NAV, postpone pipeline and then maybe even sell off some assets... doesn't seem reasonable at all
I don't see any open short positions?
Sentiment is having a bigger effect than normal on the market.
That's what I read into Buffet's statement "that the market is increasingly casino like"
There are of course advantages in that. IE GRIDs present share price is definitely an excellent opportunity.
In terms of income GRID is likely to see a significant increase when the National Grid eventually sorts self out.
Dependency on volatility to make money is always going to be riskier.
Sentiments will flip this and there will be tears for the short sellers .
Value always wins
If GRID is buying almost 50 grand worth of shares a day atm, where's all this selling pressure coming from?
It is painful. Investors have lost faith in the sector and in the management of GRID in particular. I also read concerns about the shorter duration battery assets which GRID holds.
If that 47% increase in recent BESS flows somehow feeds through to GRID's revenues, well, that's the 1st piece of optimistic news in a while.
Started: Tripod-Man, 15 Mar 2024 14:55
Last post: JTS13, 15 Mar 2024 15:39
Mind boggling isn't it
According to UK energy dashboard at 14:30 today the UK was importing almost half of our electricity.
I don't think it's a good idea for an island to rely on imports of a commodity that cannot be stored in significant amounts. I wonder when we'll be found out.
I appreciate battery storage isn't the solution to this issue but you'd think the powers that be would push for more self-sufficiency.
Hope Mr Putin doesn't get any ideas to trawl/blow up any subsea cables.
Started: JTS13, 15 Mar 2024 08:41
Last post: JTS13, 15 Mar 2024 15:38
Energy-storage.news does have some useful updates, specifically regarding BESS. Worth keeping at eye out there
The drop is surprising though. Could be due to end of year accounting for some who've punching in losses to balance profits elsewhere? Just seems mad to sell at these levels otherwise.
I topped up in the 50's pre-recent push with pension and kids accounts. Wouldn't put anything in here with sub-18 month window
Interesting, thanks. There seems to be a paucity of info about GRID. I keep looking and will update this board if I find anything relevant & useful. I'm sure you're doing the same JTS13. It's been a painful experience for all of us LTHs, but I've added this morning at 52p because I really don't think they'll allow a trust with (supposedly) £950m in assets go to the wall.
Patience is required because this is now a long-term recovery situation without divi income to sweeten the pill. First they need to cut debt while trying to avoid a fire sale of assets. Then we require the flows of revenue from the grid connections to bed down and become more predictable. Finally there should be a renegotiation of the fee structure, imo, as has happened with other poorly performing trusts. A lot of things to fall into place but with time I remain hopeful.
House of Lords has posted a report entitled: "Long duration energy storage: get on with it".
Published on Wednesday, it formally criticises the government and demand immediate and strategic actions on BESS infrastructure in the UK.
Hopefully something comes of it.
Otherwise, looks like we are being shorted again!
Started: SageOfOmagh, 15 Mar 2024 11:55
Last post: SageOfOmagh, 15 Mar 2024 11:55
ESO published this yesterday: "https://www.nationalgrideso.com/news/new-balancing-reserve-service-goes-live-reduce-balancing-costs-and-improve-system-security"
Confirms go-live for Balancing Reserve. I thought the wave of selling might be down to a delay but apparently not.
Started: kingsinbad, 23 Feb 2024 08:17
Last post: unhooked, 14 Mar 2024 16:31
Oof! A capitulation day to end a fun week. Income mandates selling out I suppose. Loads of uncertainty here, both in the battery storage sector generally and with this trust. Another c*ck-up buying this...
Been a few weeks since update and last share buyback announcement. Aren't we due more? Presumably its a matter of timing their buys
Battery energy storage systems (BESS), is pleased to provide shareholders with an update on the 2023 Capacity Market auction results for the portfolio.
The latest T-1 CM auction concluded on 20 February 2024, clearing slightly higher than expected at a price of £35.79/kW. The Company has secured additional 1-year contracts across 13 of its Projects with a total derated capacity of 90.491MW. In total, the additional contracts are expected to generate £3.2mn of additional revenue from October 2024 to September 2025.
In the valuation process for the Company's assets, CM revenues are only included where contracts are held at the date of valuation, therefore these new contracts are in addition to current revenue assumptions and are accretive to NAV. The NAV benefit from these contracts will be recognised at the next valuation date of 31 March 2024.
Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc, said: "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.
"One of the great attributes of battery energy storage systems is their flexibility. We can swiftly and remotely configure our software to tap a wide range of potential revenues available to BESS without needing to make any physical changes to hardware. These revenues include both contracted income such as the Capacity Market auction results we're announcing today, as well as merchant, or trading, revenues."
Started: toneman, 20 Feb 2024 08:46
Last post: JTS13, 20 Feb 2024 15:45
Very good read, thanks for posting.
@oldman, a few key points:
- Several restrictions due to be removed in March. Early indicators suggest could treble volume.
- Another important upgrade appears to be regarding systems integration for understanding supply. My take is that ESO systems currently don't gather sufficient data to justify BESS, but that the system will be changed to increase data feed, which in turn will result in more BESS being used.
- ESO taking BESS v seriously, largely on response of "strong industry pressure". Again, v good for us.
Overall, reads like v positive developments. However, it is the "time will tell" story here. Could be towards late 2024 once market may be considered to be nearer a normalised status
Thanks for the link which I have read but did not fully understand! The gist appears to be that things are moving in the right direction for battery energy storage operators, I think! Is anyone able to explain the new developments in layman’s terms?
Good article from Timera explaining how the recent changes should be starting to help BESS.
https://timera-energy.com/our-latest-views-on-bess-value-capture-in-the-bm/
Started: Pedrobull, 9 Feb 2024 11:04
Last post: rylidan, 14 Feb 2024 18:49
Nice to see directors taking advantage too. Everything out in the open. Work to do, but should be a solid long term investment from here. I started building a bit too soon, but happy with my ending position.
GLA
Likely no more buy backs for this next week or so. Forget the term, but was something like a restriction on buying 6% over average bid during the preceeding 5 trading days... so, given the jump today, cool off period required before more buy backs can resume.
Still, it is nice to have some green candles on the charts.
Re: average down, this remains highly discounted. Obviously the biz isn't out of the woods yet, and the sector still has big problems. But potential upside here over the next 18 months or so remains extremely attractive. I'm going to DCA up with my monthly SIPP contributions anywhere under 80p
You were right. It was clearly panic and heavily oversold. Wish ow I'd bought more and averaged down but lacked the courage. It is unclear how much buy backs actually happened but far less of cost than the dividend earmarked for distribution.
Buy backs taking effect in lower volumes, as expected. The panic is subsiding, and we should climb slowly past 60p, towards 70p, I hope!
The price of Natural Gas is now $1.823 per MMBtu back to where it was in 2020
And wind farms suffering too;
https://www.bbc.co.uk/news/articles/c9786p4qd83o
Started: JTS13, 5 Feb 2024 13:17
Last post: JTS13, 5 Feb 2024 20:30
PS: nice to finally have a green candle. But that said, given ~250k in buyback + Director buys within the past few days, the fact it hasn't risen more suggests that either there were loads of shares needing picked up, or there remains quite a bit of selling pressure. Actually quite possible this only continued to have dropped if the buyback wasn't announced
Lots of good points and practical examples on complications + delays.
Back to GRID I was a bit disappointed about US delays. Understand the need for financial prudence, equally have read on other BESS projects that other markets can generate 2-3x the revenues in UK due to all the issues we got here (part of the reason why GRID is at more of a discount than others).
@Rylidan, selfishly, I hope that the buybacks have effect in rising the price, not just stabilising it for you to buy more lol. Equally, trust you can get in at a good rate. In long term, anything under a pound is likely good value tbh
The Edison note is good and combine that with buybacks and director purchases today was a good day.
For me there are two main sticking points here one is the infrastructure and the propensity of the free market to revert to fossil fuels as price allows and natural gas is back to 2020 prices at approx $2.06 per Mmbtu down from a peak over $10 when Putler invaded Ukraine early 2022. On the infrastructure Gresham have extra KwH but the national Grid isn't connected.
I am helping out at golf club and we are looking to put 36KwH peak solar onto the roof and need DNO authorisation before we do as we may supply a few KwH in the summer months we can't use back the grid, the DNO can take 6 months!
Edison said this in March23 - Operational capacity rose to 550MW at end December 2022, a rise of 29% from the 425MW capacity at the end of the previous year. Capacity is set to reach 1GW in 2023 (a rise of 80% compared to end 2022) and around 1.5GW (+170%) in 2024. GRID’s manager expects this to drive further NAV and EBITDA growth.
Now they are saying All these projects are completed and ready for connection to the grid. Once this is done, operational capacity is set to rise from 740MW at present to 1,072MW by end-Q324. In addition, work is also underway to increase the duration of several of GRID’s already operational projects, which should add a further 340MW to its operational capacity and raise potential earnings from these projects by up to 40% at relatively low cost.
GLA
This has always been advertised as a minimum 5 year hold. I'm lucky enough to have had this on my radar for a while and feel this is an ideal time to accumulate a long term position. I have a strong feeling we won't stay under 60p for all that long. As soon as the current issues are resolved this should climb back up quickly. All IMO.
GLA
My read of this Edison note is one of cautious optimism and makes me more confident to average down at these prices as the downside now would appear to be fairly limited. That said all my readings about this company were positive but I'm still nursing huge losses over 3 months of holding GRID.
TBH it would be nice if the shareprice stayed nice and low while the buy back was in progress.
Started: rejucht, 1 Feb 2024 16:09
Last post: rylidan, 3 Feb 2024 09:43
Wrt fees, I don't buy under £1k, normally £3k trades. That way the max fees I pay is £6 plus stamp duty, or a max of 1.1% of the purchase. For a £3k purchase only 0.7% fees. Even very large transactions incur the 0.5% stamp duty, so buying frequently or one big doesn't add a lot IMO.
Yes, good point Rylidan. Guess we are very fortunate they got a solid raise in before everything dropped.
Regarding the buyback, a first day purchase of almost £70k is nothing to be sneezed at (unlike the Director buys. Their holdings are pretty low). I don't think we know how much the total buyback package could be (or maybe i missed that detail), but dividend would usually be a 9.5 to 10 mill payout. If even half that went into buyback, it really could make a material difference. Nowhere near back to what SP was, but at least get it started
Yes Rejucht, the fees can be high for small purchases. Some providers can set up re-occuring buys from 1 or 2 pounds. Otherwise, so long as fees can be kept below 3% and mentality is for 2+ year time frame, then maybe combined fee/risk v reward could still be attractive.
Just noticed RNS today stating company has bought 133.9k shares at av 50.1p. Obviously a small number as only £70 k but can one infer that the BOD and Jefferies think the shares are good value at this price and may provide a floor to risk of major further downside? This buyback encourages me to dip a toe in the market at under 50p SP. Any other under water investors in GRID see it the same way as I do?
Tempting to buy small lots to average down but the dealing costs become significant for those of us subject to
flat rate fees. The share buy back could be a stop on the downside if the market guesses at what level it kicks in. I believe a company eventually publish the price they paid to buyback.
I agree JTS13. I'll be making small top ups over the next year. Only started a small position a few days ago and bought 5 small lots so far. This board is going quiet which is good news. The share buy backs will take time to have an impact, but they will when volume drops off. Crazy that only 8 months ago they issued 32m shares at £1.55 and now buying back for a fraction.
GLA
Here you go... direct link to the post:
https://twitter.com/Adam_Grant_Bell/status/1752693813007831101
Just go to twitter and search his name. Thread posted on 31st Jan. Very informative and crazy!!! Thanks Talt for posting
Has he deleted it?
Gresham House Energy Storage Fund (LON:GRID) and Harmony Energy Income Trust (LON:HEIT) I don't hold and know little about either but noticed the piece from Adam Bell on X yesterday with regards to OFGEM possibly invalidating the above's business model somewhat.
https://x.com/Adam_Grant_Bell/...
Started: Mkx007, 31 Jan 2024 19:15
Last post: rylidan, 1 Feb 2024 16:44
Thanks Starbright. Very useful and I've also taken up a small holding there. As well as the regional diversification I like the cash position.
Here I think the buybacks will be good, once they start. I believe they may need shareholder approval?
Wish we all had this foresight before buying GRID, lol
I had bought around a pound during Covid dip. Did very well for a period, but needed to sell original holding around 130. Bought back a few around 150p, with an average at about a pound now. My portfolio performance was pretty poor during 2023. Then u hear that US stocks are at ATHs and all this stuff, its kinda frustrating. As some are saying here, the gains are often in non UK markets. A real shame
From GSF's Sep23 HY report:
"Q: You’ve spoken about diversification, but does it work?
For a largely merchant asset-class like energy storage, diversification is a fundamental necessity to reduce revenue volatility. Within Great Britain, opportunities to diversify are limited due to uniform revenue streams and consistent wholesale electricity prices across all regions. This uniformity results in significant fluctuations in revenue year on year. Seasonal variation also creates large fluctuations in quarterly revenue, with Spring and Summer historically yielding higher revenues compared to the Fall and Winter seasons.
The Company has always factored these revenue variations into its decision making, which is why international diversification has been a key strategic objective. Today, it is unique in holding assets across five distinct and uncorrelated energy systems. This enables the Company to navigate the challenges posed by individual market fluctuations by accruing more stable and reliable revenue generation throughout the year from multiple markets. This can be seen in the Company’s revenue over this reporting period, when revenue from its GB fleet was £7.54 per MW/hr, compared with £15.10 per MW/hr on a consolidated portfolio basis, representing c.2x vs a GB-only portfolio."
Thank you rejucht and StarBright. The old UK discount eh? Should've guessed. Note to self: (1) cut allocation to UK listings - it really has become a low quality arena for investing; (2) be wary in investing in sexy new asset classes.
I agree that the difference re GSF is revenue diversification. The UK "market" has been v difficult for BESS in the last year. Exposure elsewhere has paid off in revenue generation - and therefore cashflow - terms.
GSF revenue generation in the 6m to 30 September 2023:
UK £3.6m (19%)
Ireland £9.7m (50%)
Germany £0.8m (4%)
Texas £5.1m (27%)
Total £19.2m (100%)
Dividend (2023=7pps) on 495m shares is £34.6m
Started: hattrack, 1 Feb 2024 09:06
Last post: hattrack, 1 Feb 2024 09:06
The info given by GH and the company itself has amounted to mis selling. I bought , on the basis of public statements, after Christmas 23. I was offered a 'one hour' briefing by the Fund manager last week. They have know the situation was dire since mid December. Clearly other 'mates' were updated and had the brains to bale out during January. The corruption in UK investment is now so endemic that the smart money has moved to the better regulated, more liquid USA. (HOME Reit is another running disaster). I have lost 60% in 4 weeks and I now either bale or have to wait 3 years AND buy lots more when it all settles. The Opportunity Cost is hard to calculate. I won't be buying UK Investment Trusts anymore. The market is rigged for the public school city boys.
Looking very oversold here IMO. Nice approach by the BoD to switch from dividend to buy backs. They also reckon its oversold.
I think there have been warning signs in the BESS sector, so the fall much in line with others in the sector. This may have been impacted more, by its greater visibility of being the largest. Can't see what the BoD have done wrong. There have been plenty of director buys over the past year.
I would only worry if any declared sale yesterday. Can't see that as at all likely.
GLA
Started: cap164, 31 Jan 2024 13:25
Last post: Spades1973, 31 Jan 2024 18:03
I’ve emailed them too . As a private investor the communication behaviour of this management team is an absolute disgrace.
If it turns out the insiders have been disposing on no official news, it could be one for the authorities.
I emailed via this - https://greshamhouse.com/contact/
the response I got today;
Good afternoon
Thank you for your recent enquiry regarding GRID via the website, we have shared your comments and concerns with the investment Team.
The Fund Manager is unable to make selective disclosures due to Market Abuse Regulations and insider trading rules, however, the team wished me to assure you that GRID’s Management team and Board are aware of the current circumstances and expect to provide an update to all shareholders at the appropriate opportunity.
Kind regards
The last time I had a share drop 50% in a month on me like GRID it filed for bankruptcy a month later and we shareholder got nothing. The GRID BOD should issue a statement with a profits warning, announce a dividend suspension but issue an.assurance the company is trading as solvent.
Market conditions are poor. Apparently revenues for 24 are looking worse than 2023 (listening a podcast on energy-storage dot com)
They still advocate business case for long term, but current situation definitely bleak.
GRID should really post announcement, unbelievably poor comms.
Am looking to add later, but only once things turn. Happy to buy at 80p (large premium to today) if more certainty is there
Can you provide an email address as I would do the same. Let's publish the response here to share it. This kind of destruction of value is highly concerning.
Started: sackofspuds, 31 Jan 2024 14:43
Last post: JTS13, 31 Jan 2024 15:32
Some key points from podcast, dated 24th Jan:
Frequency market is saturated. National grid bringing enduring auction capability has reduced prices further. Revenues negatively impacted for BESS, makes dependence on market arbitrage.
Also sounds like asset location and site selection is going to make more impact on pricing in the future.
Conviction that these are short-term tail winds...although, I wouldn't say that this was communicated very confidently for the coming year
49min long recording . Can find by googling "Do higher risks mean higher returns for battery storage investors"
I bought these after hearing an interview with Ben Guest, the manager, on the Money Makers podcast back in November 2023. Ben said that the forthcoming changes to the balancing platform by National Grid National Grid ESO (Energy System Operator) should really help them:
https://soundcloud.com/moneymakersaudio/184-weekly-investment-trusts-podcast-with-ben-guest-and-guy-anderson-11-nov-2023
Well, the changes to the balancing mechanism to seem to have happened on 13 December:
https://www.nationalgrideso.com/news/first-stages-open-balancing-platform-go-live
"This first stage of the Open Balancing Platform will unlock new levels of precision for the ESO control room, enabling Bulk Dispatch, a new tool that will allow control room engineers to send hundreds of instructions to smaller Balancing Mechanism Units and Battery storage units sites at the press of a single button."
Gore Street Energy Storage (GSF) mention it in their update for the FY Q3 ending 31 December 2023:
https://www.londonstockexchange.com/news-article/GSF/portfolio-and-trading-update/16282172
"the GB fleet (excluding Stony) generated an estimated £6.1/MW/hr, less than half the Company's estimated average revenue during the quarter. Highly anticipated reforms to the Balancing Mechanism began in December 2023, with the impact on revenues yet to be seen."
GRID mentions this change in their last RNS of 15 Dec:
https://www.londonstockexchange.com/news-article/GRID/launch-of-the-eso-s-new-open-balancing-platform/16253483
"the initial indications are positive and, based on provisional data, are expected to lead to increased revenue opportunities for our assets.
The Fund is now looking to move its non-BM assets into the BM to capture the higher revenue opportunities now expected to be available."
So how come GRID is down nearly 47% YTD on no news and GSF down nearly 22%?
Tempted to catch this falling knife but it shows no sign of bottoming out.