The Anonymous Widower

Japan A ‘Very Interesting Market’ For Gore Street As It Becomes An ‘Enabler’ Of JXTG’s Transition

The title of this post, is the same as that of this article on the Solar Power Portal.

This is the introductory paragraph.

London Stock Exchange-listed energy storage fund Gore Street has outlined how it sees Japan as a “very interesting market” following its investment from JXTG Nippon Oil & Energy Corporation.

I like Gore Street’s philosophy and its execution.

I am not an investor and probably never will be, but they seem to be based on sound principles and do their modelling well. I’ve built enough large financial models to know a good one from its results.

Gore Street is normally investing in lithium-ion batteries.

  • These batteries now have a predictable reliability profile and I suspect cash-flow from owning a battery is fairly predictable.
  • The control and monitoring software will get better as time goes by and these batteries will probably update themselves automatically.
  • They probably aren’t that affected by COVID-19, as lockdown still needs energy to be balanced and these batteries are probably performing as normal.
  • The heat of the last few weeks probably caused more grief than COVID-19.
  • If a site visit is necessary, they can probably be done with one man in a van with a key to the security system. So maintenance is probably easy to do, whilst maintaining social distance.

I also liked this paragraph from the article.

, Gore Street Capital CEO, Alex O’Cinneide, said that the fact that the deregulation of the Japanese market over the next few years makes it of interest to the company, alongside it having the same characteristics of the UK in terms of the decommissioning of coal, nuclear and gas and increasing levels of renewables.

Could Gore Street Energy Fund, be a safe investment for today’s difficult times?

 

July 2, 2020 - Posted by | Energy, Energy Storage, Finance, Health | , , ,

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