LONDON, UK: Gore Street has completed the acquisition of a 90% stake in a 28 MWh operational energy storage asset based in Cremzow, Germany.
The acquisition of an asset in mainland Europe signifies an exciting opportunity for Gore Street, as it diversifies its exposure to new revenue streams across the inter-connected European grid network. Cremzow has been operating since 2019; providing a critical suite of balancing and frequency services across eight countries and eleven associated Transmission Network Operators (TNOs) in the European grid system.
Cremzow can participate in wholesale and intra-day arbitrage, presenting additional revenue stacking opportunities similar to GB and Irish markets. In addition, the intent by the EU to diminish co-dependency on gas and other fossil fuels, reinforced by the current Ukraine crisis, will likely further enhance the already pressing need for energy storage infrastructure in the region.
The acquisition represents the first step in Gore Street’s announced strategy to diversify beyond the UK and Irish markets. Following the acquisition, the Company’s operating assets will have increased to 232 MW, and total portfolio assets under management increased to 629 MW.
The site was developed in two stages by Leclanche, Enel Green Power and Enertrag, starting with an initial 2.0 MW asset and followed by an additional 20.0 MW expansion.
The system is based on LG Chem lithium-ion batteries. LG Chem is a leading battery supplier and existing relationship of Gore Street. Enertrag, a leading German renewable developer, will retain a 10% stake and will support the technical management of the project.
The asset was purchased from Enel X Germany Gmbh, a subsidiary of Enel X, which is Enel Group’s global business line offering services that accelerate innovation and drive the energy transition, which manages demand response for around 7.7 GW of total capacity globally.
Alex O’Cinneide, CEO of Gore Street Capital, the Company’s investment manager, commented: “The Company has, as part of its growth plans, achieved international expansion firstly in 2019 with our move into the Irish energy system, and now in 2022 into mainland Europe. Gore Street has a unique skill set, drawing on our first mover advantage in GB, in owning and operating an international portfolio, and will continue to aggressively pursue critical markets such as Germany.
This is a landmark acquisition with compelling fundamentals which not only demonstrates our entry into new markets but also increases our operational cash generating assets, and further diversifies Gore Street’s portfolio. We are very pleased to have worked with ENEL on this transaction and look forward to continuing to partner with Enertrag to optimise the asset going forwards.
Energy storage is an ever-increasing infrastructure requirement, and we will continue to seek out the best opportunities from our considerable pipeline across our key markets.”