Edison issues flash on Gresham House Energy Storage Fund (GRID)

Responding to challenging times

Edison Investment Research Limited Edison issues flash on Gresham House Energy Storage Fund (GRID): Responding to challenging times 05-Feb-2024 / 11:40 GMT/BST The issuer is solely responsible for the content of this announcement.

London, UK, 5 February 2024

 

Edison issues flash on Gresham House Energy Storage Fund (GRID): Responding to challenging times

Gresham House Energy Storage Fund (GRID) is the largest UK fund investing in utility-scale battery energy storage systems (BESS). A recent sharp decline in gas prices, a ‘disappointing’ start to the Energy System Operator’s new energy trading platform and systemic delays connecting completed projects to the national grid have raised concerns about the revenue generating capacity of the BESS sector. This has placed significant downward pressure on the share prices of GRID and others in the sector. GRID’s share price has declined by more than 50% over the past month and is trading at a 67% discount to its last published NAV. A recent trading update by GRID’s manager, Ben Guest, provided details of the company’s response to these challenging market conditions, while also reiterating confidence in GRID’s positive long-term prospects.

Guest and the board insist that the increasing need for energy storage means the longer-term prospects of the BESS industry, and GRID, remain positive. Perhaps the clearest indication of this conviction is the decision to use the opportunity provided by the sharp share price decline to begin a ‘limited’ share buyback program. Any such purchases will be ‘highly value accretive’. This flash note will be followed by a more detailed update on these developments and GRID’s prospects over the medium term.

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Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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End of Announcement - EQS News Service

1830429  05-Feb-2024 

Gresham House Energy Storage Fund PLC at the time of publication of the news with a fall of -6,60 % to 0,481GBP on London stock exchange (05. Februar 2024, 12:28 Uhr).