The Anonymous Widower

Gore Street Energy Storage Fund Revenues Boosted Amid Market Volatility

Over the last few years, I have blogged about energy storage and two energy storage funds; Gore Street and Gresham House.

According to an article on Proactive Investors, with the same title as this post, Gore Street hasn’t been doing badly lately and says this about their recent performance.

Gore Street Energy Storage Fund PLC said its assets in Great Britain generated revenues two times above forecast in September and added that industry is only at the start of its growth curve.

When I saw the concept of an energy storage fund, as a Control Engineer, I liked it.

The wind doesn’t always blow and the sun doesn’t always shine, so something is needed to cover the gaps in the supply.

The obvious way to cover the gaps is to put a battery in the circuit.

  • When the electricity supply is higher than the demand, the surplus electricity can be stored in a convenient battery connected to the grid.
  • When the reverse is true and there is a deficit of electricity, the energy in the battery can be used to make up the difference.

The battery works with electricity, just like a bank works with money, except that batteries don’t pay interest.

  • The battery owners do make money by buying electricity, when it’s cheap and selling it back at a higher price.
  • Tesla and others will sell you both batteries and the controlling software.
  • Some areas with perhaps high levels of wind and solar or unreliable power supplies could use batteries improve the robustness of the electricity supply.
  • More wind and solar power will inevitably lead to a need for more energy storage.
  • Battery technology will get cheaper in terms of the cost per MWh of storage.
  • Battery-grid interface hardware will get more capable.
  • Management software will get better at balancing the grid.

This all adds up to increasing opportunities at possibly lower costs for energy storage funds like Gore Street and Gresham House.

So we will inevitably see a growth of energy storage funds.

But they will change.

New Battery Technology

There are several new battery technologies, that I believe could prove to be competitive in terms of capacity, cost, efficiency and reliability when compared to lithium-ion batteries.

Some of them will also have the advantage of only using easy-to-source, environmentally-friendly materials in their manufacture.

Some battery technologies are also easier to scale up, in that your have a central unit, which is connected to several stores. So to scale up, you add another store to the central unit. Highview Power’s CRYOBattery works on this principle.

I can see energy storage funds taking off faster, when someone designs the ideal battery for their purposes.

More Energy Storage Funds

We will see more players enter the energy storage fund market, just as we saw more players enter the peer-to-peer lending market. But just as that market attracted men with silly hats, boots and horses, not all will be reputable. But there are signs that banks I might trust are entering the market.

I also think there could be a hybrid model, which is almost a cross between an energy storage fund and peer-to-peer technology.

But be prepared for financial innovation.

And always do due diligence before investing.

Local Energy Storage Funds

I can envisage sensible established players offering investment on a local basis.

So perhaps the residents of a town with a need for a battery, might like to help fund it.

Or just as Aviva with their strong connections to East Anglia helped to fund Greater Anglia’s new trains, they might fund a battery in perhaps Cromer.

Conclusion

I feel the future is very rosy for energy storage funds.

 

October 26, 2021 - Posted by | Energy, Energy Storage, Finance | , , , ,

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