For an unknown fee, Gore Street Energy Storage Fund has acquired a 90% share in a 28 megawatt-hour operational asset in Cremzow, Germany, from Enel X Germany.
Leclanche, Enel Green Power, and Enertrag built the site in two stages, first with a 2MW power plant and then adding a 20MW expansion.
LG Chem lithium-ion batteries power the system. Enertrag will keep a 10% share in the project and will help with technical management.
The acquisition of a property in mainland Europe represents a “exciting opportunity” for Gore Street, according to the fund, as it diversifies its exposure to new revenue sources across Europe’s interconnected grid network.
Cremzow has been offering balancing and frequency services across eight countries and 11 connected transmission network providers since 2019.
In addition, the facility can participate in wholesale and intra-day arbitrage, providing additional revenue stacking potential comparable to those seen in the UK and Ireland.
The acquisition, according to Gore Street, is the first move in the company’s strategy to diversify beyond the UK and Irish markets.
The company’s operating assets will have increased to 232MW, and its total portfolio assets under management would have increased to 629MW as a result of the acquisition.
“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 Capital CEO Alex O’Cinneide stated.”
“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.”