Gresham House Energy Storage Fund (GRID) invests in a diversified portfolio of utility-scale battery energy storage systems (BESS) in the UK and Ireland. This note provides an update to our February 2022 initiation note, following the release of GRID’s results for the financial year (ended 31 December 2021). FY21 was a good year for the fund. GRID’s revenues and NAV returns saw impressive growth, supported by growing demand for BESS services and upward revaluations to some of its portfolio assets. Also, Manager Ben Guest and the board are positive about the future. Operational capacity is set to rise dramatically in the next two years, as GRID’s existing project pipeline comes on stream and Guest plans to expand operations further, by investing in additional projects in US, European, Australian and Canadian markets (subject to shareholder and lender approvals). The stage is set for GRID to realise more significant NAV uplifts and increases in its already attractive dividend.
