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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"...?
This looks seriously rocky over the next 6 months. However, they've made a confident decision to pursue the planned growth (could easily have maintained divi or buybacks and postponed some projects).
Grid was traditionally a stable hold for the divi for me. Has always been one for the long term. Will monitor over the coming 3 months, but quite likely I'll be adding. Don't need the cash for 2 years at least
Posted 18th Mar on Energy Storage News
"Battery storage market intelligence firm Modo Energy has released data confirming a 47% increase in weekly battery energy storage system (BESS) dispatched volume on the grid in Great Britain (GB) compared to eight weeks prior.
In January 2024, the electricity system operator National Grid ESO relaunched bulk dispatch for battery energy storage units in the Balancing Mechanism (BM) following its closure in December 2023 due to technical issues."
Presumably GRID has benefited too in this. Still a long way to go. Can't see reason for the continued sell off at all time lows
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
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!
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
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
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
More in depth research note coming, but link to the flash announcement below. Note that you need to replace DOT with a "." and delete the spaces
www.edisongroup DOT com/research/responding-to-challenging-times/33212/?utm_campaign=EQS%20Press%20Releases&utm_source=EQS&utm_medium=Press%20Release
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.
Considering a top up, but uncertain
BTC rise between now and mid 25 looks very likely. ARB has around 0.5% of global supply, so whilst there're moans about not having more, its still not bad. It's also one of very few plays providing exposure to BTC in the UK.
Equally, the debt on here just keeps mounting and halving will provide short-term headwinds until BTC price doubles or more.
Can't see this getting remotely close to historical highs (BTC 30% off, ARB ~95% off).
What are folks thinking?
I think this is a pretty extreme FUD period for BESS projects. Equally, I find it hard to believe this sector will be allowed to sink.
It is now a bit of a contrarian play. I am however looking to DCA down with small amounts over the next 3 months or so. Made first small purchase yesterday in SIPP. I won't be accessing that for years, and have multi-year horizon on everything within that account. Wouldn't go in here with regular ISA yet though, still too many unresolved headwinds. And the constraints on buy-backs may limit impact that they have once SP is over 60p again