Gresham House Energy Storage Fund (GRID) has released its half-year results for 2024, revealing a 34% year-on-year increase in operational capacity, reaching 790MW by June 30.
Despite this capacity growth, operational portfolio revenues declined 12.8% to £17.9 million, while EBITDA dropped 23.9% due to difficult market conditions in early 2024. Nevertheless, GRID achieved a milestone shortly after the period's end, increasing its operational capacity to 1GWh.
To manage the low-revenue environment in the first quarter of 2024, GRID adjusted its debt facilities, reducing overall debt capacity from £335 million to £225 million, with a further reduction expected.
The company remains optimistic about its future revenue prospects, as net revenues in July and August were 25% higher than in the first half of the year. Several ongoing projects, including Penwortham, Shilton Lane, and Melksham, are expected to come online in late 2024, boosting capacity.
The company anticipates that increased volatility in supply from deeper renewable energy penetration, combined with higher winter demand, will support improved trading revenues in the second half of the year.
GRID expects its operational portfolio to exceed 1GW by the year's end, marking a significant step forward in its construction programme. This growth will be accompanied by a plan to increase portfolio capacity and stabilise earnings between 2025 and 2027, which will be outlined at GRID's upcoming Capital Markets Day in November.
John Leggate, Chair of GRID, acknowledged the challenges faced in the first half of 2024, including the difficult decision to temporarily suspend dividends. However, he expressed confidence in the company's strategy, saying, “GRID has made significant progress on executing areas of its strategic plan.
This is fundamental to driving continued growth.” Fund manager Ben Guest added that positive industry developments, including rising renewable generation and improved battery technology, have positioned GRID for renewed growth in 2025 and beyond.
