Directors and Advisors
Directors
Pat Cox – Chair
Caroline Banszky
Max King
Tom Murley
Lisa Scenna
Registered office
First Floor
16-17 Little Portland Street
London W1W 8BP
AIFM and Investment
Manager
Gore Street Investment
Management Limited
16-17 Little Portland Street
London W1W 8BP
Joint Corporate Broker
J.P. Morgan Cazenove
Floor 29
25, Bank Street
London E14 5JP
Administrator
Apex Fiduciary Services (UK) Limited
4th Floor
140 Aldersgate Street
London EC1A 4HY
Company Secretary
Gore Street Services Limited
First Floor
16-17 Little Portland Street
London W1W 8BP
Registrar and Receiving
Agent
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Joint Corporate Broker
Shore Capital Stockbrokers Limited
Cassini House
57 St James Street
London SW1A 1LD
Depositary
INDOS Financial Limited
The Scalpel, 18th Floor
52 Lime Street
London EC3M 7AF
Independent Valuer
BDO LLP
55 Baker Street
London W1U 7EU
Independent Auditor
Ernst & Young LLP
25 Churchill Place
Canary Wharf
London E14 5EY
Legal Advisor
Stephenson Harwood LLP
1 Finsbury Circus
London EC2M 7SH
Dealing Codes
ISIN: GB00BG0P0V73
SEDOL: BG0P0V7
Ticker: GSF
Global Intermediary
Identification Number
(GIIN)
ZAX2MB.99999.SL.826
Legal Entity Identifier (LEI )
213800GPUNVGG81G4O21
www.gsenergystoragefund.com
The paper stock used in this report
is manufactured at a mill that is FSC
accredited. The manufacture of the paper in
this report has been Carbon Balanced. The
print factory is FSC accredited and has the
Environmental ISO 14001 accreditation.
CBP029867
Gore Street Energy Storage Fund plc Annual Report for the year ended 31 March 2025
Annual Report of
Gore Street Energy
Storage Fund plc
For the year ended 31 March 2025
Gore Street Energy Storage Fund plc (“GSF” or “the Company”)
is London’s first listed energy storage fund, launched in 2018.
The Company is the only UK-listed energy storage fund with a
diversified portfolio across five grid networks.
Energy storage technologies can enhance power system stability and flexibility and
are key tools for balancing out variability in renewable energy generation, facilitating
the integration of more renewable energy supply into power grids. In this way,
energy storage is critical to the renewable and low carbon energy transition.
Investment Objective
The Company aims to provide investors with a sustainable dividend, generated
from long-term investment in a diversified portfolio of utility-scale energy storage
assets. In addition, the Company seeks to provide investors with capital growth,
in accordance with the Company’s investment policy. The Company’s investment
policy is available on its website.
Sustainability
The Company uses various frameworks to report on its environmental, social,
and governance (ESG) performance. During the reporting period, the Company
published the ESG & Sustainability Report 2024, which outlines its approach
to sustainability and integration of ESG principles into its business operations.
The report provides information on the Company’s management of climate-
related risks, following recommendations by the Task Force on Climate-Related
Financial Disclosures (TCFD). The Company is also a signatory of the Principles
for Responsible Investment (PRI) and complies with the Sustainable Finance
Disclosure Regulation (SFDR).
About Us
Strategic Report
1 Key Metrics
2 Chair’s Statement
6 Investment Manager’s Report
29 Strategic Report
Governance
42 The Board of Directors
44 Directors’ Report
48 Audit Committee Report
50 Management Engagement
Committee Report
51 Remuneration and Nomination
Committee Report
52 Directors’ Remuneration Report
54 Statement of Directors’
Responsibilities in respect of the
preparation of the Annual Financial
Report
Financial Statements
56 Independent Auditor’s Report
61 Statement of Comprehensive
Income
62 Statement of Financial Position
63 Statement of Changes in Equity
65 Statement of Cash Flows
66 Notes to the Financial Statements
Annual General Meeting
82 Annual General Meeting –
Recommendations
84 Notice of Annual General Meeting
86 Explanatory Notes to the Notice of
Meeting
Additional Information
89 SFDR Annex IV
97 Alternative Performance Measures
and Glossary
Inside back Shareholder
cover Information
Back cover Directors and Advisors
Contents
Shareholder Information
Webpage
The Company’s website has copies of all Company
documents, as well as links to the Company’s Regulated
Information Service announcements.
Association of Investment Companies
The Company is a member of the Association of Investment
Companies: www.theaic.co.uk.
Alternative Investment Fund Managers
Directors (“AIFMD”) disclosures
The Company is required to make certain disclosures to
comply with the FCA Handbook and other regulations.
These are included in this report or are made available on
the Company’s website.
Annual Board Engagement Schedule
In addition to the events below, Shareholders may contact
the Chair via the Company’s registered office or reach out
via the investor relations team at ir@gorestreetcap.com.
17 July 2025 (9.30 am) Post-Annual Report Analyst
webinar
17 July 2025 (11.00 am) Post-Annual Report Retail
Shareholder webinar
18 September 2025 AGM
December 2025 Post-Interim Report Analyst
webinar
December 2025 Post-Interim Report Retail
Shareholder webinar
Spring 2026 Board engagement with
institutional shareholders
Leverage
The Company’s leverage exposures as at 31 March 2025
were:
Gross method: 98.24%
Commitment method: 98.28%
Dividends
Dividends are paid quarterly, usually in January, April, July
and October.
Share liquidity
Average weekly share volumes for the twelve months ended
31 March 2025 was 6,577,864.
Strategic Report
Annual Report for year ended 31 March 2025
1
Key Metrics
* Some of the financial measures above are classified as Alternative Performance Measures, as defined by the European Securities and Markets Authority and are indicated with
an asterisk (*). Definitions of these performance measures, and other terms used in this report, are given on page 97 together with supporting calculations where appropriate.
** The 57MW Enderby Asset, 75MW Dogfish and 200MW Big Rock asset were energised during the reporting period, taking the total energised capacity to 753.4MW at year end.
For the year ending 31 March 2025
KEY METRICS
As at 31 March 2025 As at 31 March 2024
Net Asset Value (NAV) £519.3m £540.7m
Number of issued Ordinary shares 505.1m 505.1m
NAV per share 102.8p 107.0p
NAV total return* 1.1% -1.2%
NAV total return since IPO* 48.0% 48.4%
Share price 58.2p 64.5p
Market capitalisation £294.0m £325.8m
Share price total return* -2.6% -30.0%
Share price total return since IPO* -14.3% -10.2%
Discount to NAV* -43.4% -39.7%
Portfolio’s total capacity 1.25 GW 1.25 GW
Portfolio's operational capacity 421.4 MW** 371.5 MW
Average operational capacity 408.9 MW 311.5 MW
Total portfolio revenue £35.3m £41.4m
Average revenue per MW/yr £86,286 £132,905
Operational EBITDA* £21.0m £28.4m
Total Fund earnings* £8.7m £20.2m
Dividends per Ordinary Share paid during the year 5.5p 7.5p
Operational dividend cover for the year* 0.76x 0.78x
Total Fund dividend cover for the year* 0.32x 0.56x
Dividend Yield* 9.5% 11.6%
Gross asset value (GAV)* £631.9m £578.1m
Gearing* 17.8% 6.5%
Ongoing Charges Figure* 1.38% 1.42%
(2024: £28.4m)
£21.0m
OPERATIONAL EBITDA
(2024: 371.5MW)
421.4MW**
OPERATIONAL CAPACITY
(2024: 11.6%)
9.5%
DIVIDEND YIELD
5.5p
DIVIDENDS PAID DURING THE YEAR
(2024: 7.5p)
102.8p
NAV PER SHARE
(2024: 107.0p)
1.1%
NAV TOTAL RETURN
for the year ended 31 March 2025
(2024: -1.2%)
2
Gore Street Energy Storage Fund plc
On behalf of the Board, I am pleased to present the Annual
Report of Gore Street Energy Storage Fund plc for the year
ended 31 March 2025. This was a year of significant growth
and transformation, during which the Company substantially
delivered against the strategic, operational, and financial
objectives that were outlined over a year ago. We more than
doubled our energised capacity, secured long-term contracted
revenue, and have begun to employ bespoke AI-driven
algorithmic trading for our GB assets, which has yielded 11%
revenue outperformance against the industry benchmark.
Our geographically diversified portfolio now exceeds 750 MW
energised across five grid networks and regulatory systems,
leaving the Company positioned to generate long-term cash
flows as the portfolio matures, all while supporting the global
clean energy transition.
We know that this has been a challenging year for shareholders,
which led the entire board to participate in extensive one-to-one
discussions with shareholders. Following those discussions, the
Board took decisive steps to align with shareholder priorities
on dividends, debt repayment, and cost reduction, including
revisions to the AIFM agreement.
Independent Review
Given the persistent share price discount to NAV affecting the
Company, the Board retained Alexa Capital LLP, a specialist
clean energy transition advisory firm, to review the Company
and to support the Board in evaluating the best potential options
for maximising shareholder value.
The scope of the review is broad, exploring M&A, debt
repayment, and growth options, including the rationalisation
of the asset base to free up capital to pursue current asset
enhancement and building out of the pipeline. The review
covers opportunities to optimise trading as well as alternative
revenue structures such as cap and floor or tolling contracts.
This process is ongoing, but preliminary results identify several
actionable opportunities. For example, given the rapid decline
in capex and the increasingly trading-dominant GB market the
augmenting of selected GB assets with additional capacity (from
1 to 2-hour systems) has been identified, as the review shows
markets ascribing greater value to 2-hour systems.
Assuming the preliminary results hold, we expect to augment
three GB assets: Stony (79.9 MW) and Ferrymuir (49.9 MW),
followed by Enderby (57 MW). These sites were selected based
on their modular, modern design, which allows for relatively
quick upgrade times and limited downtime of the existing
MWhs, thereby minimising disruption to revenue generation
while enhancing long-term returns.
The Board believes this is a compelling example of how the
Company can continue to extract value from its existing portfolio
while maintaining capital discipline. Further outcomes from the
independent review will be communicated in due course.
Special Dividends
In addition to the declared 1.0 pence per share for the quarter
ended 31 March 2025, once the proceeds from the sale of Big
Rock Investment Tax Credits (ITCs) (which was signed on 11July)
are available to distribute, the Board intends to declare a special
dividend of an additional 3.0 pence per share. Under the terms of
the agreement, Big Rock’s proceeds have been structured to be
monetised in tranches. Post-period, the Company received 50%
of the Big Rock’s ITCs, with the next 25% proceeds payable by
the ITC buyer by September-end2025 and with the last tranche
payable by November-end 2025. Per the terms of the Big Rock
Debt Facility, the first tranche will be used to reduce the facility
from $90 million to $60 million and to fund reserves to cover
the final settlement of Big Rock construction and acquisition
costs. This will result in lowering the Company’s gearing and
associated borrowing costs.
Upon availability of the remaining proceeds, the Board intends
to distribute 3.0 pence per share by way of special dividends
in two equal instalments of 1.5 pence per share, to be paid by
the end of the calendar year. Separate dividend announcements
will be made in due course to confirm the record and payment
dates.
On behalf of the Board of the Gore Street
Energy Storage Fund plc, I am pleased to
present the Company’s Annual Results
for the year ended 31 March 2025.
Chair’s Statement
Strategic Report
Strategic Report
Annual Report for year ended 31 March 2025
3
Dividend Policy
The Board has reviewed the Company’s capital allocation
priorities in the context of its operational progress and financial
position, and conservatively forecast cash flows for the next
24months. From the second quarter of the financial year, the
Board intends to pay a quarterly dividend of 0.75 pence per
share, with the first payment expected in respect of the quarter
ending 30 September 2025.
This forecasted level of distribution is underpinned by a
weighted average operational capacity of c.600MW during
FY25/26, increasing to c.700MW (adjusted for ownership)
in F26/27. It is critically based on conservative revenue
assumptions, specifically (i) that other than for Big Rock, there
is no increase in average portfolio revenues from FY 24/25 and
(ii) for Big Rock half the revenues are per the fixed pricing under
the 12-year Resource Adequacy contract and the other half on
the current central merchant price forecast. If revenues recover,
we can expect higher dividends. The 2026/27 financial year will
see the portfolio’s full prioritised capacity generating revenue for
the whole period, providing further potential for growth in free
cash flow and distributions.
As previously announced, a special dividend of 3.0 pence per
share is expected to be paid towards the end of the calendar
year, in line with the monetisation of the Big Rock ITC. In light
of this, no additional dividend will be declared in respect of the
quarter ending 30 June 2025.
While FY26 represents a bridging year for the Company, the
Board expects the dividend to step up to a minimum annual
target of 3 pence per share as the portfolio reaches full run-
rate capacity. The upcoming strategy update will inform the
long-term dividend policy from FY27 onwards, ensuring that
distributions remain aligned with the Company’s scale, market
conditions, and capital allocation priorities.
The Board remains committed to a disciplined and transparent
approach to shareholder returns. Dividends will be paid from
free cash flow, subject to prudent reserves and compliance with
debt covenants.
AIFM Agreement
The Company continues to benefit from its relationship with
Gore Street Investment Management, the appointed AIFM
and Investment Manager. The Investment Manager brings
a specialisation that has delivered tangible benefits to the
Company. Effective from 1 October this year, the Board has
negotiated a reduction in the fees payable under the AIFM
agreement, bringing it into line with market, with changes as
follows:
• Management Fee Calculation:
Management fees will be calculated as 1% per annum of the
sum of 50% of adjusted NAV and 50% of market capitalisation.
This replaces the previous NAV-only basis.
• Management Fee Cap:
The annual management fee will be capped at 1% of adjusted
NAV.
• Performance Fees:
Both the performance fee and the exit performance fee will be
removed.
• Takeover Provisions:
The termination fee in the event of a takeover will be removed.
• Quarterly Charging Basis:
Management fees will continue to be charged quarterly.
Themarket cap component will be calculated as the average of
the daily closing market capitalisation during the relevant quarter,
while the NAV will continue to be calculated as of the quarter-end.
• Estimated Saving:
Based on the average share price during the 2024/25 financial
year, the revised management fee structure would have resulted
in an estimated saving of c.22% or £1.14 million, excluding any
additional savings from the removal of performance-related fees.
4
Gore Street Energy Storage Fund plc
Strategic Report
Debt Position
The Company and its investments ended the year with
£30.5 million in available cash and £56.3 million in undrawn
debt headroom. Total debt drawn on a look-through basis
(referring to both company-level and asset-level borrowings)
was £112.6 million. During the year, the Company upsized
its revolving credit facility to £100 million and secured
additional project-level debt in California. The Company
expects to be in line with the previously guided GAV ratio of
15-20% for the completion of the prioritised portfolio.
Portfolio Performance
While the current operational portfolio exceeds 750 MW, for the
year under review, revenue of £35.3 million with an operational
EBITDA of £21.0 million was achieved from an average
operational portfolio of 408.9 MW. This resulted in an average
revenue of £9.85/MW/hr. While this represents a decline from
the previous year, it was achieved in the context of evolving
market dynamics and is significantly above our peer group,
reflecting the resilience of our diversified portfolio.
Fleetwide availability exceeded 95% through an asset
management strategy that focuses on proactive maintenance,
warranty management, and the increasing use of an advanced
analytics platform to monitor asset health and optimise
performance.
Construction progress over the year was substantial, with the
Company’s energised portfolio increasing from 421.4MW/
392.1 MWh to 753.4 MW / 924.1 MWh. As previously
reported, three major assets were successfully energised: Big
Rock (California), Dogfish (Texas), and Enderby (Great Britain).
With these assets now coming online, the portfolio presents
a materially reduced risk profile and an increased revenue-
generating asset base.
Net Asset Value Performance
As of 31 March 2025, the Company reports a NAV of
£519.3million, or 102.8 pence per share, representing a NAV
total return of 1.1% over the year. This aligns with the previously
reported unaudited NAV announced on 18 June, having
subsequently been reviewed and audited by the Company’s
auditor, Ernst and Young.
Key NAV drivers over the period included updated revenue
curve assumptions (-6.1 pence), inflation (-1.0 pence), and
dividends (-5.5 pence), partially offset by asset de-risking
(+3.2 pence) and net portfolio returns (+5.2 pence).
Shareholder Engagement
In May and early June 2025, the Board undertook an extensive
institutional shareholder roadshow to gather feedback on the
Company’s market positioning, capital allocation strategy,
treatment of US Investment Tax Credits, and approach to
leverage. Discussions covered a wide range of options, including
reinvesting for long-term growth, dividend payments, share
buybacks, debt redemption, asset recycling, co-investment
options and M&A.
A majority of shareholders spoken to expressed their priority of
meeting the 7p dividend target for the 2024/25 financial year.
The Company has successfully monetised the ITCs associated
with its recently completed US assets, generating proceeds of
c.$84 million net of insurance costs, exceeding prior guidance.
As detailed in the dividends section of this report, we are now
on track to declare the special dividends in autumn and by the
calendar year end.
The Board is committed to maintaining this active and
transparent engagement with shareholders. In addition to
regular meetings and investor calls, the Board seeks feedback
from a wide range of stakeholders. A formal “Annual Board
Engagement Schedule” will be included in the Shareholder
Information section of this report. Shareholders may contact the
Chair via the Company’s registered office or reach out via the
investor relations team at ir@gorestreetcap.com.
Share Price Discount Management
While the Board does not currently intend to undertake share
buybacks, it is seeking shareholder approval to maintain the
authority to do so in the future.
Sustainability
Sustainability remains central to our strategy. This year, the
operational portfolio avoided 11,970 tCO₂e and stored over
39,000 MWh of renewable electricity, enough to power
c.14,500 homes. Further to the SFDR disclosures included
in this report and available on page 89, we will also publish
our annual ESG & Sustainability report in early September
2025, which will include further details on our approach to
sustainability and key metrics.
Board Succession Planning
As the Company approaches its 8th anniversary, three of the
current directors are due to retire in the next two years. The
Board of Directors is committed to gradually completing the
succession process. As detailed in its report the Nomination and
Remuneration Committee has progressed with the recruitment
process and aims to announce the first director appointment
before the end of 2025.
Strategic Report
Annual Report for year ended 31 March 2025
5
Annual General Meeting (AGM)
The AGM will be held at the offices of Stephenson Harwood,
1Finsbury Circus, London, EC2M 7SH on 18th September
2025. Further details are included in the Notice of AGM on
page 84. I look forward to welcoming shareholders attending in
person. If you are not able to attend in person or prefer to vote
by proxy but have questions for the Board, please contact the
Company Secretary at cosec@gorestreetcap.com.
Patrick Cox
Chair
Gore Street Energy Storage Fund plc
16 July 2025
Investment Manager’s
Report
6
Gore Street Energy Storage Fund plc
Dr Alex O’Cinneide
CEO of Gore Street Capital, the Investment Manager
Strategic Report
This has been a landmark year for the Company, defined by increased scale, delivery and
innovation. We have more than doubled our operational portfolio capacity, reaching nearly 1 GWh
across five energy systems. We have secured $165 million in long-term contracted revenue and
have strengthened the cash position with additional funding from two high-quality lenders and
monetisation of all Investment Tax Credits for the Company’s recently energised US assets. Going
forward, this increase in the revenue-generating capacity will be complemented by a declining cost
base, supported by a revised fee structure based on market capitalisation and net asset value. Our
diversified strategy and active approach have ensured that we continue to generate best-in-class
revenue.
Strategic Report
Annual Report for year ended 31 March 2025
7
Investment Manager’s Report
Highlights:
The energised portfolio increased to 753.4 MW / 924 MWh
(FY23/24: 421.4 MW / 392.1 MWh).
The portfolio generated £35.3m of revenue during the financial
year. This amounted to £21.0m in operational EBITDA.
The Board of Directors approved a dividend of 1.0 pence per
ordinary share for the March-end 2025 quarter. As outlined
in the Company’s recent June update, it expects to distribute
a further 3 pence per share once the proceeds from the sale
of the Big Rock ITCs become available for distribution, which
is expected to be in H2 2025. The Board intends to distribute
3 pence per share by way of special dividends in two equal
instalments of 1.5 pence per share, to be paid by the end of the
calendar year.
The Company achieved an operational dividend cover of 0.76x
and a fund-level dividend cover of 0.32x.
As at March-end 2025, the Company and its investments had
£30.5m of available cash, and a debt headroom of £56.3m, with
debt drawn at £112.6m.
The Company secured the stackable, fixed-price Resource
Adequacy contract in California for the Big Rock asset, worth
over $14 million annually.
The Company’s assets continued to support the energy transition
by providing services needed to integrate more renewable
energy sources into the grid. The operational portfolio avoided
11,970 tCO
2
e and stored 39,290 MWh of renewable electricity.
This is equivalent to c.14,500 homes powered by renewable
electricity for a year.
1
Post-Period:
The Company completed the sale of the Investment Tax Credits
(ITCs) for the Dogfish and Big Rock assets in Texas and California,
respectively. The consideration for the Investment Tax Credits
associated with both US assets is c.$84 million net of insurance,
exceeding the previously guided range. The proceeds from the sale
of the Dogfish have been received, with the first tranche of the Big
Rock proceeds also received.
Net Asset Value:
• NAV as at 31 March 2025 was £519.3 million, bringing NAV
total return since IPO to 48.0%.
• NAV per ordinary share of 102.8 pence per share.
Table 1: Movement in NAV since March 2024
Movement in NAV since March 2024 Changes in NAV (PPS)
NAV March 2024 107.0
Dividends
(5.5)
Revenue Curves
(6.1)
Inflation
(1.0)
Derisking of Assets
3.2
Net Portfolio Returns
5.2
NAV March 2025
102.8
Macroeconomic factors were the primary drivers of the Company’s
NAV over the reporting period. Updated third-party revenue
curves resulted in a negative NAV impact of 6.1 pence per share.
Updated inflation assumptions had a further 1.0 pence per share
negative impact on NAV.
Net portfolio returns, which include cash generation from the
operational portfolio, secured pricing for the Resource Adequacy
contract net of Company-level costs which resulted in a net
positive 5.2 pence per share impact on NAV.
For readers wishing to jump to specific sections, the contents are
listed below:
8 Portfolio Overview
10 Revenue Generation and Portfolio Performance
18 Capital Allocation
19 Q&A with Sumi Arima
23 NAV Overview & Drivers
27 Message from Alex O’Cinneide
28 Outlook
A glossary of industry terms can be found on page 100.
Proceeds from ITC
Post-period, the total consideration for
the Investment Tax Credits associated
with both US assets is c.$84 million
net of insurance costs exceeding the
previously guided range.
Increased Energised Capacity
Energised capacity more than
doubled materially reducing the risk
profile of the portfolio.
Increased Contracted Income
$14m p.a. contract secured for
12years.
Photo Credit: Avantus
1 This assumes a 2700 kWh yearly consumption of electricity per home in GB.
8
Gore Street Energy Storage Fund plc
Portfolio Overview
Others*
CM
Trading
FFR
D-Suite
Split by MW
Great Britain (39%)
California, US (27%)
Island of Ireland (17%)
Germany (3%)
Texas, US (14%)
Others*
Trading
CM
FFR
D-Suite
Split by MWh
California, US (43%)
Great Britain (31%)
Texas, US (15%)
Germany (3%)
Island of Ireland (8%)
D-Suite
Trading
FFR
Duration
1 hr ≤ duration <2 hr (54%)
≥2 hr (30%)
<1 hr (16%)
Tesla
Leclanche
LG
BYD
Fluence
NEC ES
LSES
Nidec
Energy
Storage
System
Provider
Nidec (27.2%)
LSES (26.5%)
NEC ES (16.6%)
BYD (10.7%)
LG (4.0%)
Leclanche (2.9%)
Tesla (0.5%)
Fluence (11.5%)
Figures 1-4: Overview of the Energised Portfolio
Strategic Report
United States Europe
22 MW
in the
German
market
497 MW
in the
GB market
385 MW
across the
combined NI &
ROI market
145 MW
in the Texan
market
200 MW
in the Californian
market
Strategic Report
Annual Report for year ended 31 March 2025
9
Table 2: Portfolio Overview
Assets MW MWh Geography Grid
Energised Portfolio
Lascar 20.0 20.0 GB NESO
GS10 (formerly known as Ancala) 11.2 11.2 GB NESO
Larport 19.5 19.5 GB NESO
Hulley 20.0 20.0 GB NESO
Breach 10.0 10.0 GB NESO
Cenin 4.0 4.8 GB NESO
Boulby 6.0 6.0 GB NESO
Port of Tilbury 9.0 4.5 GB NESO
Lower Road 10.0 5.0 GB NESO
Stony 79.9 79.9 GB NESO
Ferrymuir 49.9 49.9 GB NESO
Enderby 57.0 57.0 GB NESO
Mullavilly 50.0 21.3 NI EirGrid/Soni
Drumkee 50.0 21.3 NI EirGrid/Soni
Porterstown I (PBSL) 30.0 30.0 ROI EirGrid/Soni
Cremzow 22.0 29.0 Germany 50 Hz
Snyder 9.95 19.9 Texas, US ERCOT
Sweetwater 9.95 19.9 Texas, US ERCOT
Westover 9.95 19.9 Texas, US ERCOT
Dogfish 75.0 75.0 Texas, US ERCOT
Big Rock 200.0 400.0 California, US CAISO
Energised Capacity Total 753.4 924.1
Pre-Construction Portfolio
Mineral Wells 9.95 n/a Texas, US ERCOT
Cedar Hill 9.95 n/a Texas, US ERCOT
Wichita Falls 9.95 n/a Texas, US ERCOT
Mesquite 9.95 n/a Texas, US ERCOT
PBSL-expansion 60.0 n/a ROI EirGrid/Soni
KBSL 30.0 n/a ROI EirGrid/Soni
KBSL-expansion 90.0 n/a ROI EirGrid/Soni
Middleton 200.0 n/a GB NESO
Mucklagh 75.0 n/a ROI EirGrid/Soni
Pre-Construction Capacity Total 494.8
Overall Portfolio 1,248.2
Strategic Report
10
Gore Street Energy Storage Fund plc
Revenue Generation and Portfolio Performance
The macro drivers of energy security and decarbonisation remained prominent during the reported period across all of the markets in
which the Company operates. The European Union continued to pursue ambitious renewable energy targets, encouraged by strong
regulatory support, with substantial market reforms underway designed to incentivise the deployment of critical infrastructure such
as Battery Energy Storage Systems (BESS). In the United States, although a shift in political priorities became evident toward the end
of the reported period, mounting pressure from the threat of increasing energy costs and decreased energy security led to nationwide
legal disputes and uncertainty around the 4-year outlook for energy infrastructure in this market. Nonetheless, the advantageous
position as an incumbent asset owner remains clear.
Assets located in the Great Britain market experienced a substantial increase in revenue in FY24/25 Q4, driven both by a growing
opportunity in the wholesale and balancing markets, and increased demand for ancillary services. The higher revenue was
underpinned by increased dispatch rates in the balancing mechanism and the introduction of new ancillary services, which alleviated
saturation in the market by increasing total procurement volumes.
The Irish market continued to be the portfolio’s highest earning market, with the current DS3 arrangements set to remain in place until the
earlier of the replacement service go-live date or 30 September 2027. The BESS revenue stack in Ireland has historically been heavily
dominated by ancillary services. However, trading revenue showed a material year-on-year increase, driven by higher spreads caused
by days of colder temperatures. TheInvestment Manager’s decision to increase participation in the wholesale market led to improved
revenue. Post-reporting period, the start of the Scheduling and Dispatch Programme (SDP) in Ireland was delayed further until November
2025, the change is expected to further increase the trading opportunities available for Irish BESS.
The German market remained highly attractive, with continued renewable energy buildout and regulatory support for BESS. Increased
solar generation played a pivotal role in the 48% increase in revenue year-on-year. Suppressed midday energy prices, caused by high
solar generation, led to increased prices in Frequency Containment Reserve (FCR) and automatic Frequency Restoration Reserve
(aFRR) which BESS were well placed to capture. The evolving generation mix has led to a surge in the deployment of battery storage,
with installed capacity set to nearly double by the end of FY25/26.
In Texas, the market faced a decline in BESS revenue due to the saturation of ancillary services and milder summer conditions
compared to the previous year. However, a shift from ancillary services to trading presented opportunities in capturing real-time price
spikes. The portfolio assets outperformed the Modo market benchmark over the period.
Figure 5: Total Revenue by Market & Capacity since IPO
0
20
40
60
80
100
120
140
Jun-end
2018
Sept-end
2018
Dec-end
2018
Mar-end
2019
Jun-end
2019
Sept-end
2019
Dec-end
2019
Jun-end
2021
Sept-end
2021
Dec-end
2021
Mar-end
2020
Jun-end
2020
Sept-end
2020
Dec-end
2020
Mar-end
2021
Jun-end
2022
Sept-end
2022
Dec-end
2022
Mar-end
2022
Jun-end
2023
Sept-end
2023
Dec-end
2023
Mar-end
2023
Jun-end
2024
Sept-end
2024
Dec-end
2024
Mar-end
2024
Mar-end
2025
Revenue per Grid (£000's/MW)
Germany - Revenue/MW (£) Texas - Revenue/MW (£) Total Revenue per MW (£) Ireland – all Island - Revenue/MW (£) Great Britain - Revenue/MW (£)
Strategic Report
Annual Report for year ended 31 March 2025
11
Great Britain (GB) Market
Table 3: Overview of the GB Market
TSO National Energy System Operator (NESO)
GB Portfolio (energised) 296.5 MW / 287.8 MWh
Market Share 6%
Average revenue in the GB market saw a 22.5% year-on-year increase.
2
This growth was primarily driven by opportunities within the
wholesale market and the Balancing Mechanism (BM).
During the reporting period, BM dispatch rates increased, in part due to the Open Balancing Platform (OBP) reforms and the increased
duration of bids and offers of BESS assets. The OBP reform enabled the grid operator to dispatch BESS more frequently and for longer
periods, putting BESS in competition with conventional thermal generation in the BM. The volume of BESS dispatched in the BM
increased by 257% to 284 GWh compared to the previous financial year. While there remains scope for improvement in the BM dispatch
process, the recent performance underscores the crucial role BESS plays in the operation of the grid.
The Day-Ahead (DA) wholesale market saw a substantial increase in spreads, averaging 20% higher than the previous financial year.
This rise was largely influenced by wind generation, which contributed to price volatility throughout the summer months.
Conversely, during the colder winter season, the higher costs associated with marginal generation units, such as gas peakers, led to
increased energy prices when these units were dispatched.
Dynamic Containment (DC) prices also increased by 6% compared to the previous financial year. The increase in pricing was supported
by an increase in procurement volume by 15% year-on-year, as well as the introduction of a new product “Quick Reserve” (QR) in
December 2024. Procurement volumes across Ancillary Services increased by 1.2 GW year-on-year, with increases in procurement of
Dynamic Moderation and Regulation towards the end of the reporting period further reducing ancillary services market saturation and
leading to notable DC/M/R price increases.
Quick Reserve is designed to provide pre-fault disturbance response. Initially, Phase 1 only permits BM registered assets to participate,
while Phase 2, planned for Summer 2025, will allow non-BM assets to participate. NESO currently procures 800 MW of QR, with BESS
providing a significant portion of the capacity. The Investment Manager systematically seeks to qualify and enter the portfolio in all
available revenue streams in the market and consequently will look to prequalify the majority of the portfolio’s non-BM assets in Phase 2.
Ferrymuir, a 49.9 MW/49.9 MWh asset, is BM registered due to its location in Scotland, and to align with its obligation under its Bilateral
Embedded License exemptible large power station Agreement (BELLA). Ferrymuir’s location in Scotland enables it to provide balancing
actions which can alleviate grid constraints between Scotland and England. Due to the large build out of wind generation in Scotland,
current thermal restrictions on transmission lines limit the amount of power that can be transmitted from Scotland to England. Assets in
Scotland are able to provide congestion relief to the grid by importing energy during periods of constraints and dispatching energy once
these constraints are resolved.
During the period, the portfolio’s Enderby asset was successfully energised. Enderby is the portfolio’s first transmission connected
asset and will deliver voltage and frequency services to the grid under a Mandatory Services Agreement (MSA), further diversifying the
Company’s revenue streams.
All available capacity was bid into the March 2025 T-4 Capacity Market auction. No capacity was available to be bid into the March 2025
T-1 auction. The Capacity Market T-4 auction cleared at £60/kW/year, with the portfolio securing 51.809 MW of non-derated capacity.
This will provide c. £717,000 of revenue over the 2028/2029 delivery year (October 2028 to September 2029).
Figure 6: Average Monthly EFA Price of DC/M/R
0
2
4
6
8
10
12
14
16
Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25
DC DM DR
2 Based on the Modo benchmark on a per MW/basis, excluding the Capacity Market.
Strategic Report
12
Gore Street Energy Storage Fund plc
Irish Market
Table 4: Overview of the Irish Market
TSO SONI (Northern Ireland), EirGrid (Republic of Ireland)
Irish Portfolio 130.0 MW / 72.6 MWh
Market Share 13%
The Irish Market operates under the combined Republic of Ireland (ROI) and Northern Ireland (NI) market called the Single Energy Market
(SEM). The Delivering a Secure Sustainable Electricity System (DS3) initiative was introduced in Ireland to facilitate the integration of
non-synchronous renewable energy sources, primarily wind power onto the grid. Under the DS3 regime, batteries in Ireland hold long term
DS3 contracts which allow systems to participate in ancillary services. Initially due to expire in 2023, the regime has been extended until the
earlier of the implementation of the new service or 30 September 2027.
The portfolio’s Northern Irish assets, Mullavilly and Drumkee, hold DS3 uncapped contracts. The Republic of Ireland site, Porterstown,
holds a DS3 capped contract. DS3 capped contracts are fixed price contracts. DS3 uncapped contract prices vary according to scaling
factors linked to the System Non-Synchronous Penetration (SNSP). SNSP is a real-time metric that gauges the level of intermittent
renewable generation and net interconnector flows within the grid, defined as a percentage of electricity demand on the system. DS3
rates increase as SNSP increases, meaning that batteries delivering DS3 services see increasing remuneration for their response at times
when the system needs it the most.
The Company’s Northern Irish assets with DS3 uncapped contracts saw a 33% decrease in revenue compared to the previous financial year.
This reduction was due to the change in Temporal Scarcity Scalars (TSS) and lower wind generation over the period which led to reduced
SNSP values. TSS scalars are price multipliers that change based on the SNSP and determine revenue for DS3 uncapped contracts. In
October 2024, TSS scalars were lowered, which adversely affected revenue during times of high wind penetration. Porterstown Phase I in
ROI, was not affected by the scalar change as it holds a fixed price DS3 capped contract.
Irish trading revenue increased by 127% during the period, driven by an increase in average daily Day-Ahead spreads and the decision by
the Investment Manager to increase volumes in wholesale trading. The increase in spreads was linked to higher volatility associated with
more extreme weather conditions; H2 of the financial year saw periods of high demand due to low temperatures and storms. Wholesale
revenue in FY 24/25 H2 accounted for 77% of the total annual wholesale revenue. Despite representing only 23% of operational Irish
MW capacity, Porterstown Phase I accounted for 39% of the total Irish wholesale trading revenue in FY24/25. Porterstown’s optimisation
strategy incorporated a higher proportion of wholesale trading and resulted in a 10% increase in revenue for the asset, compared to the
previous financial year. Porterstown qualified for Steady State Reactive Power (SSRP) in the DS3 uncapped regime, beginning delivery on
April 1
st
, 2025, providing an additional revenue stream for the site post-period.
In the T-4 28/29 Capacity Market auction, Mullavilly, Drumkee, and Porterstown Phase I secured a contract value of £135.31/kW/
year (or €149.96/kW/year) with a derated capacity of 1.376 MW each for Mullavilly and Drumkee and 2.063 MW for Porterstown
Phase I. Post-period, Porterstown Phase I was also bid into the T-1 auction, with results expected in July 2025. The Investment Manager
continues to systematically bid the assets into the Capacity Market annually to capture as much of the available revenue as possible.
The Scheduling and Dispatch Programme (SDP) market reform was expected to be introduced in Q4 of FY24/25 but has since been
delayed. The reform will enable further participation of BESS in trading through higher certainty of dispatch. EirGrid is also expected
to provide further guidance on the Future Arrangement for System Services (FASS) programme, which will replace the current DS3
Programme with a Day Ahead System Services Auction (DASSA).
Figure 7: SNSP levels during FY24/25
Apr-24 May-24 Jul-24Jun-24 Sep-24Aug-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25
0%
20%
40%
60%
80%
100%
<50
50-60
60-70
>70
Average
Strategic Report
Annual Report for year ended 31 March 2025
13
German Market
Table 5: Overview of the German Market
TSO 50 Hertz
German Portfolio 22.0 MW / 29.0 MWh
Market Share 1%
Revenue in the German market increased by 48% compared to the previous financial year, largely driven by a 17% increase in peak
solar generation. Ancillary service pricing increased in line with the higher opportunity cost for thermal generation which continued
to set the price in ancillary services. Solar generation played a key role in increasing ancillary services and wholesale trading spreads
during the summer, as solar generation peaks typically lead to suppressed midday pricing. Thermal generators were forced to
compensate for lower energy pricing through higher ancillary services bidding, leading to increased pricing in ancillary services
markets. Frequency Containment Reserve (FCR), a frequency response ancillary service, saw clearing prices rise by 51% year-on-year.
Additionally, automatic Frequency Restoration Reserve (aFRR), a service combining capacity and energy components, experienced a
year-on-year increase in acquired volumes of 3% for aFRR energy and 13% for aFRR capacity, attributable to the greater capacity of
renewable energy on the grid.
Winter 2024/25 saw multiple periods of Dunkelflaute, the German word referring to a period of low solar irradiation coinciding with
low wind speeds. This drop in renewable energy generation drove increases in wholesale and balancing prices as marginal thermal
generators, typically with higher operational costs, were required to support the grid. Batteries have also been well placed to support
the grid during these periods and capitalise on higher revenue.
Battery capacity in Germany is expected to nearly double by the end of FY25/26. Germany has targeted to phase out coal by 2038
and rely more heavily on wind and solar, creating a need for flexible assets like BESS. As traditional baseload capacity continues to be
decommissioned and dependence on renewable energy therefore increases, the level of extreme weather events needed to trigger
similar price shifts is likely to decline, which is expected to lead to heightened volatility in trading spreads in this market.
Cremzow (22 MW/29 MWh), the Company’s German asset, began participating in automatic Frequency Restoration Reserve (aFRR) in
February 2024. aFRR, was a critical revenue stream for Cremzow in FY24/25. aFRR revenue made up 47% of total revenue over the
period, as increased solar generation created a greater need for flexible dispatch technologies on the grid.
During the reporting period, Germany amended the Renewable Energy Sources Act (EEG), passed on January 30th, 2025. This
amendment addressed concerns around renewable energy generators pricing negatively in trading markets due to their EEG subsidies.
This amendment will only apply to new generators and should not affect existing renewable generation, allowing existing generation
to continue bidding at their opportunity cost, leading to negative pricing in certain periods, and increasing trading price spreads for
batteries. As reported in the Investment Manager’s half year report, the German government continues to consider the introduction
of a Capacity Market in Germany. In August 2024, Germany launched a consultation for the potential Capacity Market design. The
consultation pointed to 2028 as the likely start date for the Capacity Market. This market, which is widely expected to include BESS
participation, would bring a source of contracted revenue to German BESS.
Strategic Report
14
Gore Street Energy Storage Fund plc
Texas Market (US)
Table 6: Overview of the Texas Market
TSO ERCOT
Texas Portfolio (energised) 104.9 MW / 134.7 MWh
Market Share 3%
In Texas, revenue has historically been driven by periods of high demand on the power grid and limited generation capacity, leading to increased
energy prices and reserve costs. The summer months have historically generated the most revenue for BESS assets, as rising temperatures
elevate demand on the grid. Prolonged high temperatures can also decrease the availability of generation resources, putting additional strain on
the grid and increasing energy costs. BESS assets are well-positioned to deliver under these conditions due to their high resilience.
In a notable deviation from this trend, the summer of 2024 experienced milder conditions, with lower peak temperatures compared to
previous years, despite elevated average temperatures largely influenced by elevated nighttime readings. This resulted in a reduction of
over 2 GW in daily average peak load compared to the previous calendar year. Additionally, an increase in renewable energy output during
this period alleviated grid constraints. As a result, the Company’s Texas portfolio revenue fell by 75% year-on-year, despite outperforming
the Modo market index by 32%. Ancillary service revenue also declined significantly throughout the reporting period, predominantly due
to higher battery participation in these services, and lower opportunity in trading markets. BESS have a low opportunity cost of service
delivery, and can have low bid prices, undercutting thermal generation which historically provided ancillary services.
During the reporting period, the Investment Manager lifted certain trading restrictions on the portfolio to allow further participation in
wholesale markets. This decision reflected the higher wholesale opportunity relative to ancillary services, as energy prices transitioned
towards two daily peaks during the winter months. In Q1 FY24/25 the Texan portfolio earned 20% of total revenue from trading, which
subsequently rose to account for c.99% of total revenue in Q4 FY24/25
3
. The operational assets are located in the West Hub of Texas
which allows them to capture higher trading revenue. Due to the significant development of renewable infrastructure assets in this region,
the sites benefit from a premium to average ERCOT prices.
Saturated ancillary service market prices followed cyclical trends in other markets where the Company is active. This cyclical pattern
is underpinned by a progressive increase in ancillary service demand, driven by increased grid load and renewable energy production,
and reduced annual battery build out. FY24/25 showed less lucrative summer conditions, but improved revenue towards the end of
the reporting period. Grid load continued to grow in Texas and is currently forecasted to increase by 9% in 2026, and by 67% by 2031
relative to 2025
4
.
Additionally, solar and wind represented a growing proportion of generation in FY24/25, representing 35% of total generation in
comparison to 31% in the previous year. A large portion of this growth is attributable to a 47% increase in solar energy generated in
FY24/25 compared to the previous year.
Dogfish has been qualified to participate in all available ancillary services and energy markets in ERCOT. Dogfish is the portfolio’s largest
asset in Texas, 75 MW / 75 MWh.
3 This excludes liquidated damages.
4 Source: ERCOT
Strategic Report
Annual Report for year ended 31 March 2025
15
Californian Market (US)
Table 7: Overview of the Californian Market
TSO CAISO
Californian Portfolio (energised) 200 MW/ 400 MWh
Market Share 2%
The California Independent System Operator, CAISO, covers c.80% of California’s grid. California is an established market for batteries,
with over 13.2 GW operational in the market. CAISO has a significant build out of solar energy generation, reporting peaks of 19.65 GW
during the period in the Summer 2024, an increase of 22% on the previous year. In 2024, 51.8% of the peak demand was served by
renewables.
CAISO’s large solar deployment has led to significant ramps in generation from other power sources during solar “ramp down” in
evenings, described as a “Duck-Curve”. More broadly, the “duck curve” characterises the discrepancy between peak solar generation
(around midday and early afternoon) and peak electricity demand (early morning and evenings). Batteries are well placed to provide
flexibility during these periods, typically charging during periods of peak solar generation, and dispatching during periods of constraints
created by the solar “ramp down” in generation. These large ramps create energy price volatility, increasing the availability of spreads
available to BESS for trading.
Batteries in CAISO can also benefit from Resource Adequacy (RA) contracts. RA contracts are bilateral capacity contracts which large
pools of demand known as Load Serving Entities (LSEs) have to secure to ensure adequate capacity is operating on the grid to match
their demand.
The RA contract secured for Big Rock is a fixed-price contract for 100 MW/400 MWh, worth $14 million annually for a duration of
12years. RA contracts are stackable, meaning that the asset can participate in other revenue streams simultaneously such as energy
trading, ancillary services, and reserves, similar to capacity market contracts in GB.
Table 8: Available Revenue Streams for the Big Rock Asset
Service Type Characteristics
Resource Adequacy Contracted Used to ensure stable and reliable capacity is available to the grid when needed by agreeing
long-term contracts.
Day Ahead & Real Time
trading
Merchant The trade of energy between generators and suppliers.
Regulation Service Up &
Down
Merchant Continuously corrects minor frequency deviations pre-fault.
Non-Spinning Reserve
Service
Merchant Provides additional dispatchable capacity when real-time reserves are low manually. This
capacity will be ramped to a specific load requirement within 10 minutes.
Spinning Reserve Service Merchant This service is provided by standby capacity from generation units already connected or
synchronised to the grid and that can deliver their energy in 10 minutes when dispatched.
Photo Credit: Avantus
Strategic Report
16
Gore Street Energy Storage Fund plc
Overall Portfolio Performance
The portfolio generated £35.3m in revenue with weighted annualised revenue of c.£9.85 /MW/hr.
Table 9: Overall Portfolio Performance for FY24/25
5
£(000’s) % within grid
Great Britain – 239.5 MW / 230.8 MWh
Ancillary Services 8,660 59%
Capacity Market 2,350 16%
Wholesale Trading 1,730 12%
Other 1,930 13%
Total 14,670 100%
Island of Ireland – 130.0 MW / 72.6 MWh
Ancillary Services 14,370 87%
Capacity Market 1,410 9%
Wholesale Trading 720 4%
Other 40 0%
Total 16,540 100%
Germany – 22.0 MW / 29.0 MWh
Ancillary Services 2,060 79%
Wholesale Trading 540 21%
Other – 0%
Total 2,600 100%
Texas – 29.85 MW / 59.7 MWh
Ancillary Services 630 43%
Wholesale Trading 740 51%
Other 100 6%
Total 1,470 100%
Portfolio Total – 421.4 MW / 392.1 MWh 35,280
Market
Revenue £(000’s) £(000’s)/MW/yr £/MW/hr £(000’s)/MWh/yr £/MWh/hr
Great Britain 14,670 65 7.37 67 7.67
Island of Ireland 16,540 127 14.52 228 26.00
Germany 2,600 118 13.52 90 10.25
Texas 1,470 49 5.61 25 2.81
Weighted Average 86 9.85 93 10.61
Total Revenue £(000’s)
Jun-end 2024 Sep-end 2024 Dec-end 2024 Mar-end 2025
Great Britain 2,560 4,670 2,900 4,540
Island of Ireland 3,830 3,900 4,170 4,640
Germany 790 800 550 460
Texas 620 300 230 320
Total Revenue 7,800 9,670 7,850 9,960
Operational Capacity (MW) 371.5 421.4 421.4 421.4
5 Please note values are rounded to the nearest £10,000
Strategic Report
Annual Report for year ended 31 March 2025
17
Asset Performance
Fleetwide weighted availability exceeded 95% across the reporting period.
Great Britain (GB):
The GB portfolio performed consistently, with 95% availability achieved. Despite early operations Stony and Ferrymuir achieved 98% and
99%average availability, respectively. The older assets represented the lowest availability values in the fleet, but these impactshave been
mitigated by proactive engagement of O&M providers and regular interactions by the Investment Manager.
Island of Ireland:
As with previous years, availability performance in the Island of Ireland remained a highlight, with 99% achieved across the
three assets. Consistent with the last two financial years, all DS3 events were responded to correctly and the projects
continued to generate revenue from these services without penalties.
Germany:
During the reporting period, availability of 91% was achieved for the Cremzow asset. This 22 MW site comprises a 2 MW “trial”
site and a 20 MW “expansion” site. This availability shortfall was predominantly driven by equipment failures with the 2 MW “trial”
site. The Investment Manager continues to work with equipment suppliers and O&M personnel to identify means to improve this
performance cost-effectively.
Texas:
These projects continue to demonstrate mixed performance, with availability of 85% achieved over the year, significantly driven by
outages at Snyder. These outages are mostly caused by inverter failures, whilst battery modules and their ancillary equipment performed
well. Post-period, the Dogfish asset, 75 MW / 75 MWh became operational, and is therefore not included in these figures. The Investment
Manager has developed new relationships for further support, which will be leveraged in advance of high-revenue events.
Asset Management Developments
The Investment Manager’s approach to data driven asset management remains a differentiating factor for portfolio performance and is a
key opportunity for the fleet. Over the reporting period, the relationship with a battery analytics software platform was developed further
and many projects onboarded to their platform, materially improving the overall safety profile of the fleet by having 24/7 advanced
monitoring and daily indications for each onboarded project’s state of safety. Additionally, a framework agreement was executed with
another software platform and facilitates a standardised approach to capturing project data and visualising it in the cloud. The Investment
Manager is currently developing a cloud-based platform to facilitate asset visibility, monitoring and alerting, which aims to deliver material
improvements to project operations in terms of risk and availability.
Development and Pre-construction Assets
The Company continues to complete value-add works to the 494.8 MW of pre-construction assets held across multiple grids.
TheCompany retains optionality over value realisation of these projects.
Table 10: Development and Pre-Construction Assets (Capacity and Grid)
Pre-Construction Assets Capacity Grid (Geography)
Kilmannock I 30 MW EirGrid/Soni (Republic of Ireland)
Kilmannock II 90 MW EirGrid/Soni (Republic of Ireland)
Mucklagh 75 MW EirGrid/Soni (Republic of Ireland)
Middleton 200 MW NESO (GB)
Wichita Falls 9.95 MW ERCOT (Texas, US)
Mesquite 9.95 MW ERCOT (Texas, US)
Mineral Wells 9.95 MW ERCOT (Texas, US)
Cedar Hill 9.95 MW ERCOT (Texas, US)
Porterstown II 60 MW EirGrid/Soni (Republic of Ireland)
Strategic Report
18
Gore Street Energy Storage Fund plc
Capital Allocation
Independent Review
Given the persistent valuation disconnect in the Company’s share price, the Board appointed an advisor to review the Company and
support with an evaluation of the best routes forward for maximising shareholder value while ensuring the Company remains resilient
and well-positioned.
The scope of the review is broad, exploring M&A, debt repayment, and growth options, including the rationalisation of the asset
base to free up capital to pursue asset enhancement as well as further build out of the pipeline. The review looked at opportunities
to optimise trading as well as alternative revenue structures such as cap and floor or tolling contracts. This process is ongoing but
preliminary results identify several actionable opportunities. For example, given the rapid decline in capex and the increasingly trading
dominant GB market the augmenting of selected GB assets with additional capacity (from 1 to 2-hour systems) has been identified.
The Company expects to augment three GB assets: Stony (79.9 MW) and Ferrymuir (49.9 MW), followed by Enderby (57 MW). These
sites were selected based on their modular, modern design, which allows for relatively quick upgrade times and limited downtime of
the existing MWhs, thereby minimising disruption to revenue generation while enhancing long-term returns.
Further outcomes from the independent review will be communicated in due course.
Special Dividends
In addition to the declared 1.0 pence per share for the quarter ended 31 March 2025, once the proceeds from the sale of Big Rock
Investment Tax Credits (ITCs) are available to distribute, the Board intends to declare a special dividend of an additional 3.0 pence
pershare.
Under the terms of the agreement, Big Rock’s proceeds have been structured to be monetised in tranches. The Company has received
50% of the Big Rock’s ITC, with the next 25% of proceeds to be received by Autumn 2025 and the balance by the end of the current
calendar year. The first tranche will be used to reduce the amount drawn on the Big Rock debt facility from $90 million to $60 million
and also fund reserves to cover the settlement of project build-out costs for Big Rock. This will result in lowering the Company’s
gearing and associated borrowing costs.
Upon availability of the remaining proceeds, the Board intends to distribute 3.0 pence per share by way of special dividends in two
equal instalments of 1.5 pence per share, to be paid by the end of the calendar year.
Debt Position
The Company and its investments ended the year with £30.5 million in available cash and £56.3 million in undrawn debt headroom.
Total debt drawn on a look-through basis (referring to both company-level and asset-level borrowings) was £112.6 million. During the
year, the Company upsized its revolving credit facility to £100 million. The Company expects to be in line with the previously guided
GAV ratio of 15-20% for the completion of the prioritised portfolio.
Dividend Policy
The Board has reviewed the Company’s capital allocation priorities in the context of its operational progress and financial position.
From the second quarter of the financial year, the Board intends to pay a quarterly dividend of 0.75 pence per share, with the first
payment expected in respect of the quarter ending 30 September 2025.
This level of distribution is underpinned by a weighted average operational capacity of c.600MW during FY26 and is based on a
revenue assumption that reflects the portfolio average achieved over the 12 months to 31 March 2025, as well as the Resource
Adequacy price, and the latest market view for the merchant revenue from Big Rock. The 2026/27 financial year will see the
portfolio’s full prioritised capacity generating revenue for the whole period, providing further potential for growth in free cash flow and
distributions.
As previously announced, a special dividend of 3.0 pence per share is expected to be paid towards the end of the calendar year,
reflecting the monetisation of the Big Rock ITC. In light of this, no additional dividend will be declared in respect of the quarter ending
30 June 2025.
While FY26 represents a bridging year for the Company, the Board expects the dividend to step up to a minimum annual target of
3pence per share as the portfolio reaches full run-rate capacity. The upcoming strategy update will inform the long-term dividend
policy from FY27 onwards, ensuring that distributions remain aligned with the Company’s scale, market conditions, and capital
allocation priorities.
The Board remains committed to a disciplined and transparent approach to shareholder returns. Dividends will be paid from free cash
flow, subject to prudent reserves and compliance with debt covenants.
Strategic Report
Annual Report for year ended 31 March 2025
19
Q: What were the key milestones reached in the 2025 fiscal year?
At the start of the financial year, the Investment Manager set four key goals:
i) energisation of the Big Rock asset (200 MW / 400 MWh),
ii) energisation of the Dogfish asset (75 MW/75 MWh),
iii) energisation of the Enderby asset (57 MW/57 MWh),
iv) securing a Resource Adequacy (RA) contract for the Big Rock asset.
Increased Energised Capacity
Three of these goals were the energisation of the remaining in-construction assets, Big Rock, Dogfish and Enderby, with a combined
capacity of 332 MW/ 532 MWh, an increase of 79% in energised capacity (on a MW basis). Energisation is a crucial milestone,
marking the completion of construction and significantly reducing the risk profile of an asset. Energisation is particularly important as
it mitigates the risk of delays from grid operators—factors that can be beyond direct control. The energised portfolio is internationally
diversified with 61% of the portfolio based outside of GB (on a MW basis).
High-value Long-term Contracts
The Resource Adequacy contract for the Big Rock asset was secured in October 2024. This is a fixed-price contract, worth over
$14 million annually, with a duration of 12 years, and marks a substantial achievement for the largest asset in the Company’s
portfolio. This contract is fully stackable, allowing for concurrent revenue streams across wholesale trading and ancillary services.
The RA programme in California aims to ensure sufficient generation resources are available to meet the energy system’s supply
requirements. The RA programme requires load-serving entities to demonstrate they have secured enough generation capacity
through RA contracts to cover their forecasted peak demand plus a reserve margin. This includes physical resources like energy
storage to ensure flexibility and reliability in the power supply. The RA contract requires a minimum duration of 4 hours. Therefore,
the Company’s Big Rock asset will utilise 100 MW of RA deliverability.
The RA contract is similar to capacity market contracts in GB, in that it is fully stackable simultaneously with other revenue streams.
Due to the long-term fixed-price nature of the contract, it also supports securing project-level debt.
Monetisation of Investment Tax Credits
Post-period, the total consideration net of insurance costs for the Investment Tax Credits associated with both US assets
was c.$84 million, exceeding the previously guided range. This outcome reflects the strong commercial terms achieved. The
proceeds from the sale of Dogfish’s ITCs have already been received. Proceeds from the Big Rock ITC sale will be received in
three tranches (50%, 25%, 25%), with the first 50% portion received as of the date of publication.
Q: What is an Optimiser?
An optimiser seeks to optimise an asset’s revenue stack; this entails, i) operating the site, and ii) reporting on revenue. The
optimal strategy for each asset is dependent on a range of factors, such as existing contracts, location, warranty agreements
and duration. This complexity rewards those asset owners with a greater understanding of the broader market structure and the
intricacies of the asset.
As the Company’s portfolio has increased in capacity, the Investment Manager has placed greater emphasis on its commercial
strategy. By internalising optimisation of assets, greater synergy between the different technical functions is achieved,
particularly with respect to asset management. Communication between these entities enables better decision making around
commercial trade-offs and proving more emphasis on safety and long-term asset health, which is critical for the Company, given
the “buy and hold” strategy. Furthermore, the Investment Manager, as a first mover in multiple markets, has recognised that as
markets evolve, it becomes more critical to be dynamic and adapt to current market conditions to maximise revenue.
Investment Tax CreditsEnderby EnergisationDogfish EnergisationBig Rock EnergisationResource Adequacy
Q&A with Sumi Arima
Sumi Arima
CIO and CFO of Gore Street Investment Management, the Investment Manager
Strategic Report
Annual Report for year ended 31 March 2025
19
20
Gore Street Energy Storage Fund plc
Q: How much of the Company’s GB portfolio is managed by Gore Street Energy Trading?
The Investment Manager has developed an optimisation capability, Gore Street Energy Trading (GSET). The GSET portfolio
makes up 68% of the Company’s operational GB portfolio on a MW basis (detailed in table 11).
Table 11: Summary of Assets Optimised by GSET
Asset Capacity
Commencement of
GSET Optimisation
Port of Tilbury 9 MW / 4.5 MWh October 2024
Breach 10 MW / 10.0 MWh November 2024
Larport 19.5 MW / 19.5 MWh November 2024
Hulley 20 MW / 20 MW December 2024
Lascar 20 MW/ 20 MW December 2024
Cenin 4 MW/ 4.8 MWh April 2025
Stony 79.9 MW / 79.9 MWh April 2025
Total as of April 2025 162.4 MW / 158.7 MWh
Q: What is GSET’s optimisation strategy?
The cornerstone of GSET’s optimisation offering is its bespoke optimisation software. Developed entirely by the GSET team and
solely focused on storage assets, the system frequently brings in market data, reforecasts key market metrics, and re-optimises
the assets in real time, each one according to its individual characteristics, instantly responding to changes in market conditions
and thereby increasing asset revenue and reducing asset cycling.
GSET applies a range of techniques, depending on the specific forecast, including fundamental modelling, multi-variate
regressions, and neural networks. The forecasting models are regularly and thoroughly backtested and tuned, but also remain
agile, and quick to run, enabling GSET to respond to changing conditions without lag.
Alongside forecasting, the strategy aims to capitalise on the volatility inherent in the GB power markets by maintaining a diverse
basket of revenue opportunities at any point in time. GSET actively considers all markets available to the assets and allocates capacity
to the areas which have the best risk / reward characteristics at any given time. Being able to balance each of these opportunities
requires a full understanding of the requirements for each service, the trade-offs between them, and the capabilities of the Company’s
assets – something GSET software has been designed to optimise.
An illustrative day for GSET includes managing an asset’s state of charge (SOC) whilst delivering an optimisation strategy among other
variables, as highlighted in Figure 8 below. SOC management is critical for BESS as it directly impacts efficiency, safety, lifetime, and
revenue generation of the asset. If there is insufficient SOC whilst bidding into a particular service, an optimiser can be penalised.
Figure 8: An Illustrative Day Managing a GB Asset’s Participation in D*-suite Services
6
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
Import/Export
State of Charge
Small changes in SOC
as the asset delivers
DCL + DCH
Baseline a charge as
prices reach lowest
point
Out of D* service,
complete asset charge
ready for peak dispatch
Charge as prices
again drop
Export over morning
peak while delivering DC
Import over midday, as
prices go negative with
high solar generation
Peak dispatch capturing
highest price of day and
DUoS Super Red Rate
Managing SOC for
re-entry to DC at 7pm
Total SOC Out Ending Period SOC
Strategic Report
20
Gore Street Energy Storage Fund plc
6 All illustrative data. DUoS “Super Red” Rates are specific type of time-of-use DUoS charge that are particularly high and apply only to Extra High Voltage (EHV) sites
during peak demand periods.
Annual Report for year ended 31 March 2025
21
Q: How has the GSET portfolio performed?
The portion of the GB portfolio managed commercially by GSET was benchmarked against the Modo 1-hour benchmark from
December 2024 to March 2025. During this timeframe, the GSET-managed GB portfolio exceeded the benchmark by 11%,
underscoring the significant advantages of active management and tailored trading strategies. While it’s still early in GSET’s
journey, these results are very promising. We will continue to assess GSET’s performance across various metrics, including
comparisons with other third-party optimisers in GB and relevant benchmarks.
Figure 9: Average Merchant Revenue Comparison for GSET against the Modo Benchmark (December 2024 – March 2025)
7
6
7
8
9
10
Dec-24 Jan-25 Feb-25 Mar-25 Average
Average Revenue (£/MW/hr)
GSET Revenue (£/MW/hr) Modo Benchmark (£/MW/hr)
Q: How have capex prices changed over the reporting period?
As highlighted in the FY23/24 Annual Report, lithium-ion battery prices have dropped significantly, by 20% from 2023 to 2024. While
reductions in capital expenditure costs are commonplace in the renewable sector, the extent of the decreases in BESS has been exceptional.
Factors including oversupply, easing commodity prices, and technological advancements continue to drive this trend.
Among the various components, battery packs are witnessing the most rapid decrease in capex, as highlighted in the graph below, primarily
due to a substantial drop in raw materials, particularly lithium, which is currently 75% lower than its peak in 2022. This decline is further
compounded by aggressive pricing strategies from leading battery manufacturers, which command a significant share of the supply chain.
This reduction in capex underscores the strategy of tailored asset design and duration in each geography. The Company’s asset
durations range from 26 minutes to 4 hours, addressing the varying demands for ancillary services and resource adequacy in
regions such as Northern Ireland and California, respectively. By sizing assets appropriately to the prevailing market opportunity,
the Company is also able to capture this falling capex trend by retrofitting assets.
Figure 10: Volume-Weighted Average Lithium-Ion Battery Pack and Cell Price Split
8
0
100
200
300
400
500
600
700
800
900
2013 2014 201720162015 2018 2019 2020 2021 2022 2023 2024
Real 2024 ($/kWh)
Cell Pack
Strategic Report
7 This accounts for assets which were at least 90% available in Energy and AS during the month.
8 Source: Bloomberg NEF
Annual Report for year ended 31 March 2025
21
22
Gore Street Energy Storage Fund plc
Q: In what other ways is the Investment Manager leveraging data to improve operations?
The Investment Manager has been developing a platform to integrate data from the majority of the Company’s portfolio, providing security of
data availability and enabling improved operational processes and analytics capabilities across the fleet.
Ongoing development efforts include automated asset monitoring processes, alerting features to reduce response time to system failures
and improve asset availability, and mitigating risks associated with system overuse or warranty mismanagement. The platform is also
expected to support predictive maintenance capabilities and facilitate in-depth data analysis, ultimately driving continuous improvement
in decisions made across all projects and supporting improved operations of third parties. These measures will further support efforts to
maintain long-term health of the assets, minimise downtime and ultimately improve returns. An example benefit could be the live tracking of
warranties, alerting optimisers to avoid conditions that would void contracts.
This is a continuation of the market-leading technical strategy to maximise the value from the portfolio. Alongside the experience to develop
the in-house platform, the Investment Manager’s in-house capabilities for technical and commercial management uniquely enable holistic
operational performance improvements best aligned with operational objectives of the Company.
Strategic Report
Strategic Report
Annual Report for year ended 31 March 2025
23
NAV Overview and Drivers
Figure 11: Net Asset Value movement between March 2024 and March 2025
541
(28)
(31)
(5)
16
26
519
400
420
440
460
500
480
520
540
560
580
600
PLC NAV Bridge (in £ millions)
DecreaseIncrease
DividendsNAV
March 2024
Revenue
Curves
Inflation
De-risking of
assets
Net Portfolio
returns
NAV
March 2025
Total
Table 12: NAV Bridge
In (£) millions Pence/share
NAV March 2024
541 107.0
Dividends (28) (5.5)
Revenue Curves (31) (6.1)
Inflation (5) (1.0)
Derisking of Assets 16 3.2
Net Portfolio Returns 26 5.2
NAV March 2025 519 102.8
Table 13: Reconciliation of Reported NAV
2025 2024
Operational & Energised Portfolio 510,871,000 233,151,000
Construction Portfolio 40,604,000 259,398,000
Fair Value of Portfolio 551,474,000 492,549,000
Group Cash 30,465,000 65,168,000
Other Net Assets/(Liabilities) (62,645,000) (17,021,000)
NAV 519,294,000 540,697,000
Aggregate Group Debt 112,565,000 37,345,000
GAV 631,859,000 578,042,000
The Company’s independent valuer, BDO, conducted a valuation as of 31 March 2025, which included a review of the key valuation
assumptions. BDO’s findings were consistent with the Company’s valuations and the key assumptions used to determine the
Company’s Net Asset Value (NAV).
Macroeconomic factors were the primary drivers of the Company’s NAV over the reporting period. Updated third-party revenue
curves resulted in a negative NAV impact of 6.1 pence per share. Updated inflation assumptions had a further 1.0 pence per share
negative impact on NAV.
Net portfolio returns, which include cash generation from the operational portfolio, secured pricing for the Resource Adequacy
contract net of Company-level costs, which resulted in a net positive 5.2 pence per share impact on NAV. An itemised breakdown is
provided below:
Strategic Report
24
Gore Street Energy Storage Fund plc
1. Revenue Curves (-6.1 pence):
In line with the Company’s valuation methodology, a blended average mid-case scenario sourced from multiple research houses was
used where available, to give a more balanced view on future revenue generation.
The forecasts for Great Britain and Ireland indicated a short-term decrease in commodity prices, further affected by the increased
capacity from new interconnectors coming online. In Northern Ireland, the negative effect of the reduction of the SNSP scalars
against the positive effect of the expected extension of the DS3 period until the end of 2026 as of the valuation date had a net
neutral effect. In Germany, the updated revenue forecast accounted for a decrease in aFRR availability.
The US revenue forecasts saw a decline in line with the recent reduction seen in the market, which was largely driven by gas prices.
Figure 12: Blended Curve of Ancillary Services and Trading, by Grid and Portfolio Weighted Average
9
Texas NI ROI CaliforniaPortfolio Weighted Average
GermanyGB
Yearly intervals
£000s/MW/Yr
5-year intervals
Dec-25 Dec-26 Dec-27 Dec-30 Dec-35 Dec-40 Dec-45 Dec-50
0
25
50
75
100
125
150
175
200
225
2. Inflation (-1.0 pence):
Updated inflation assumptions resulted in a net decrease of 1.0 pence per share. Short-term inflation assumptions for the portfolio
were revised to reflect actual inflation figures for 2024 and projections for 2025, consistent with persistent core inflation trends
globally. Long-term inflation assumptions from 2026 onwards remain unchanged from those presented in the Company’s Half-Year
Report for the period ended 30 September 2024.
Table 14: Inflation Assumptions
Inflation Assumptions 2024 2025 2026+
GB
2.50% 3.30% 2.50%
EUR
2.43% 2.30% 2.25%
US
2.89% 2.90% 2.25%
9 The revenues displayed within the graph are real as of 2023. The forecasts for CAISO do not include Resource Adequacy revenues, which are expected to constitute up
to c.40% of the revenue stack.
Strategic Report
Annual Report for year ended 31 March 2025
25
10 Porterstown uses blended discount rates across energised (Phase I) and pre-construction (Phase II) phases. MW capacity numbers for pre-construction phase include
assets held at book value.
11 Excludes pre-construction assets at book value.
3. Derisking of Assets (+3.2 pence):
De-risking of assets in line with their respective construction progress resulted in a positive NAV impact of 3.2 pence per share. The
discount rates of Ferrymuir, Stony, Enderby, Dogfish and Big Rock were reduced, reflecting their respective construction progress. The
discount rates used in the valuations were as follows:
Table 15: Discount Rate Matrix
10
Discount Rate Matrix
Pre-construction
phase
Energised
phase
Contracted Income 10.75-12.00% 7.25-9.25%
Uncontracted Income 10.75-12.00% 8.75-9.50%
MW 494.8 753.4
The weighted average discount rate applied to the portfolio as at 31 March 2025 was 10.2%, in line with the March-end 2024
valuation, as the discount rates for pre-construction assets were increased bringing the assets in line with cost. This impact was netted
off against the reduction for the energised assets.
Net Portfolio Returns (+5.2 pence)
• Cash Generation (4.3 pence): This refers to the cash generation of the underlying portfolio.
• Fund and Subsidiary Holding Companies Operating Expenses (-2.7 pence): This refers to the expenses at the fund level
including debt service cost of £2.4m.
• Resource Adequacy Contract (3.0 pence): The secured pricing exceeded the estimate used in the Company’s previous year-end
valuations, resulting in a positive impact on NAV.
• Other DCF Adjustments and Rollover (0.6 pence): This refers to items such as updated battery cell costs for repowering,
decreases in capex forecast due to lower lithium cell pricing, and rollover (being one less period of discounting). Discount rates
increased for the pre-construction assets bringing the assets in line with cost, as noted above.
Table 16: Fair Value (FV) breakdown by Grid
11
FV Breakdown by Grid £ mn
Great Britain 194.1
Ireland 83.8
Germany 13.2
Texas 75.1
California 181.1
NAV Sensitivities and Scenarios
Sensitivities
To assess the impact of macroeconomic factors and key valuation assumptions on the portfolio’s NAV, the Company provides the
below sensitivities. The following sensitivities were applied:
a. Inflation rate: +/- 1.0%
b. FX volatility: +/- 3.0%
c. Discount rate: +/- 1.0%
d. EPC costs +/- 10.0%
Strategic Report
26
Gore Street Energy Storage Fund plc
Figure 13: NAV Sensitivities
13.5(11.9)
Inflation +/- 1%
13.5(11.6)
Discount Rates +/- 1%
(2.2)
EPC +/- 10%
2.1
(2.1)
FX +/- 3%
2.2
(15) (10) (5) 0 5 10 15
Increase in assumptionReduction in assumption
Change in NAV in pence
Scenarios
Various scenarios have been considered to assess the impact on portfolio valuations.
a. Revenue Scenarios: NAV based on third-party high & low cases reflecting the impact of different possibilities relating to
renewables buildout, increase in energy demand and other factors such as regulations. The application of high case revenues
results in a £108m increase while the low case revenues result in a decrease of £124.5m in NAV.
b. Valuation of construction portfolio using operational discount rates reflects the upside available to the NAV from the progression of
non-operational assets moving forward to their respective CODs. This results in a £73.4m increase in NAV.
Figure 14: NAV Scenarios
21.4(24.7)
High and Low
Revenue Cases
Construction NAV Using
Operational Discount Rate
14.5
5 10 15(15) (10) (5) 0
Increase in assumptionReduction in assumption
Change in NAV in pence
Strategic Report
This has been a landmark year for the Company, defined by increased
scale, delivery and innovation. We have more than doubled our
operational portfolio capacity, reaching nearly 1 GWh across
five energy systems. We have secured $165 million in long-term
contracted revenue and have strengthened the cash position with
additional funding from two high-quality lenders and monetisation of
all Investment Tax Credits for the Company’s recently energised US
assets. Going forward this increase in revenue-generating capacity
will be complemented by a declining cost base, supported by a
revised fee structure based on market capitalisation and net asset
value. Our diversified strategy and active approach has ensured that
we continue to generate best-in-class revenue.
Our internal, purpose-built platform spanning investment,
procurement, asset management, and trading is a specialisation
that has unlocked international expansion and gives us excellent
growth opportunities across the portfolio. While others have focused
on limiting the lowest bounds of their revenue generation, we have
focused on achieving the highest revenue across the sector. To further
support this, we have developed a bespoke AI-driven optimisation
platform, uniquely specialised for BESS assets, which has yielded
double-digit outperformance against industry benchmarks.
As the global energy transition accelerates, our diversified,
data-driven, and disciplined approach ensures that we remain at the
forefront of the utility-scale BESS sector.
Technology-Led: Next Generation Asset Management
Our technology-driven approach to asset management is a
cornerstone of our operational strategy; designed in-house to deliver
real-time visibility, predictive insights and performance optimisation
across the fleet. Over the past year, we have significantly advanced
this capability. We have integrated with a leading battery analytics
platform, enabling 24/7 monitoring and daily safety diagnostics
across onboarded projects. This has materially improved the safety
profile of the fleet, with early warning and state–of–the–art safety
indicators now embedded into daily operations. In parallel, we
have executed a framework agreement with a second platform to
standardise data capture and visualisation across all assets, ensuring
consistency and comparability at scale.
At the heart of this is our bespoke, cloud-based platform, which
is currently under development. This will bring asset visibility,
monitoring and alerting in a single interface. The system is designed
to support automated monitoring, predictive maintenance and
real-time alerting. It enables us to manage risk more effectively,
reduce downtime, improve availability across a geographically and
technologically diverse portfolio and make informed decisions
about who we choose to work and have ongoing partnerships with.
In addition, this sophisticated approach to asset management
has been recognised and has resulted in a material reduction in
insurance premiums. As we continue to scale, this system will be
key to maintaining our >95% availability with an approach to safety
that reduces premiums and ensures every megawatt under our
management is optimally maintained and exploited.
GSET: A Proprietary Trading Platform Designed to
Perform
Gore Street Energy Trading (GSET) is our in-house optimisation
platform; it is purpose-built for battery storage and engineered to
outperform. Unlike third-party tolling or floor structures, GSET is
fully owned and operated by Gore Street, giving us complete control
over strategy, execution and ultimately profitability. The platform is
built on a proprietary software stack that includes neural networks,
multivariate regressions, and fundamental forecasting models. These
models are continuously back-tested and tuned to reflect market
dynamics, enabling real-time re-optimisation of assets based on price
signals and the asset’s state of charge, as well as risk-adjusted return
profiles.
It is this dynamic capability to optimise across the full range of
ancillary services, wholesale trading, and the balancing mechanism
that has driven the outperformance of our software, exploiting both
positive and negative pricing periods, and the profit-maximising
approach based on often-overlooked asset-specific factors such as
degradation and warranty considerations. Since its launch, GSET has
consistently outperformed the Modo benchmark and now manages
68% of the Company’s GB portfolio. The platform is built to cover
all markets in which the Company operates, with the onboarding of
some of the Company’s assets in Texas expected in the near term.
The GB market averaged c.£72,400/MW/yr, this is materially lower
than the Company’s GSET managed portfolio, which achieved
c.£81,900/MW/yr on an annualised basis (inclusive of capacity
market contracts for the period from December 2024- March 2025
to account for GSET’s onboarding schedule), re-emphasising the
value of internally managing assets. Internalising optimisation is
critical to this asset class, unlocking specialist commercial strategies
to maximise revenue while considering the long-term performance
of the asset. A range of management approaches are seen across
the sector, especially seen in the approach to the stacking of both
contracted and merchant revenue streams. The value from energy
storage assets is multifold, providing grid security, and stabilising
services, all of which support the increasing intermittency associated
with renewable penetration. As an active manager, capturing this
volatility is fundamental to unlocking superior returns.
Declining Capex: A Structural Tailwind for Growth
The sector is undergoing a structural reset in capex costs, driven
by a convergence of oversupply, falling commodity prices, and
rapid technological advancements. Lithium prices, for instance, are
now 75% below their 2022 peak, and battery pack costs declined
a further 20% between 2023 and 2024 alone. This has had a
dramatic effect on project economics. Until recently, longer-duration
systems in key markets, such as GB, were prohibitively expensive
to enhance returns. However, the declining trend now enables the
development of longer duration systems at a lower marginal cost.
This capex trend is not just a cost reduction; it is also a tailwind
for growth. As the cost of incremental capacity decreases at an
unprecedented rate, our ability to retrofit existing assets and
deploy capital into lucrative and portfolio-accretive opportunities
Message from Alex O’ Cinneide
Dr Alex O’Cinneide
CEO of Gore Street Investment Management, the Investment Manager
Strategic Report
Annual Report for year ended 31 March 2025
27
Strategic Report
increases. It also reinforces the effectiveness of our disciplined
approach to procurement and construction, where we continue to
monitor pricing windows and optimise timing and duration. In an
asset class that is fundamentally merchant, cost control is a critical
return-defining lever. Given our access to data, and our active
approach, I am confident we will continue to lead across both cost
and revenue generation.
Outlook: Scaling Intelligently with a Focus on Cost
and Revenue Optimisation
Looking ahead, our strategy is clear: scale intelligently and optimise
across both costs and revenue across the portfolio. We continue
to take a range of steps to ensure prudent financial performance
year-on-year across the lifecycle of an investment. We continually
monitor battery prices closely to determine the optimal windows
for both augmenting and repowering the portfolio to appropriate
durations, given the market opportunities. Following the special
dividend and debt repayment, the remaining proceeds from the
sale of the ITCs could be used to retrofit assets in GB, such as the
largest and newest assets, prioritising i) Stony, ii) Ferrymuir and
later followed by iii) Enderby to a 2-hour duration to more closely
align the portfolio with the increased trading strategy seen in the
market. Other growth opportunities include retrofitting assets in
Ireland or building out the remaining portfolio of 494.8 MW of
pre-construction assets. These assets provide optionality in terms of
value-realisation, allowing us to respond to market conditions and
regulatory developments.
While this has undoubtedly been a challenging period for
shareholders – a sentiment I share both personally and now
through a revised market cap-based fee structure- it is important to
recognise the broader context. While listed markets may currently
undervalue certain asset classes, private market demand for energy
storage remains robust. Within the relatively small sub-sector of
energy storage investment trusts, we have seen utilities, private
funds, US pensions, and global banks, all seeking exposure to this
asset class. Crucially, these investors are not only allocating capital
but are doing so at valuations that support the underlying NAVs.
Against this backdrop, the Investment Manager has delivered
against every major commitment set out to investors: the
energisation of Big Rock, Dogfish, and Enderby; the securing of a
long-term Resource Adequacy Contract; and the monetisation of
all investment tax credits. As we look ahead, we remain focused
on executing against our mandate, to scale intelligently, manage
risk appropriately and ultimately deliver long-term value for
shareholders.
Strategic Report
28
Gore Street Energy Storage Fund plc
Strategic Report
Annual Report for year ended 31 March 2025
29
Key Performance Indicators (“KPIs”)
The Board monitors the performance of the Investment Manager
using the following KPIs. The figures for the year are included in
the Key Metrics on page 1.
Valuation. The value of the Company’s portfolio is measured
using NAV and NAV total return.
Operational and Total Capacity. The capacity of the
operational portfolio is used to measure how the Company’s
funds are being invested, and how quickly assets become
operational and capable of generating cash. Total capacity is a
measure of the portfolio’s potential.
Portfolio financial performance. The revenue and EBITDA
generated by portfolio companies are used to track financial
performance.
The Board also keeps the following topics under regular review.
Portfolio diversification. One of the benefits of the Company
is the ability for investors to invest in BESS across multiple grids.
This also helps spread risk.
Revenue diversification. To reduce risk, the Company’s
operational assets generate revenue from a variety of sources
including fixed, contractual income and fluctuating income.
Debt. Using debt to enhance shareholder returns is a key benefit
of investment trusts. It can also be used to fund acquisitions when
equity markets are unavailable.
Ongoing Charges Ratio. This is a way to measure the cost of
running the Company.
Strategic Report
The Strategic Report sets out the Company’s strategy for
delivering the investment objective (on the inside front cover),
the business model, the risks involved and how the Board
manages and mitigates those risks.
It also details the Company’s purpose, values and culture, and
how it interacts with stakeholders. It incorporates the Key Metrics,
the Chair’s Statement and the Investment Manager’s Report,
which all together provide a balanced and comprehensive analysis
of the Company’s business during the year.
Business model
The Company’s business model is focused on delivering the
Company’s investment objective, in line with the investment
policy. The Board is responsible for:
(a) appointing the Investment Manager and other service
providers;
(b) reviewing strategy;
(c) oversight of the Investment Manager and service providers;
(d) risk management; and
(e) ensuring the Company remains attractive for shareholders.
Details of its oversight is included below.
The Board has appointed the Investment Manager, Gore Street
Investment Management Limited, to implement the investment
policy. The Investment Manager works with the Commercial
Manager, Gore Street Services Limited, to invest and manage
the Company’s assets in line with the investment restrictions
and deliver investor value as per the investment objective
while spreading investment risk. Further information on the
Investment Manager and other service providers is included in
the Directors’ Report.
Strategic Report
30
Gore Street Energy Storage Fund plc
Investment Model
The model used by the Investment Manager and Commercial Manager (together the “Manager” except where stated otherwise) to deliver
investor value in line with the investment policy is set out below.
Performance Optimisation, Responsible management,
andmonitoring
The Manager dictates the parameters for revenue stacking and optimisation for
the portfolio. It forms its bidding strategies by taking into consideration energy
market dynamics, regulatory limitations, and existing contract commitments
and then works with optimisation and trading professionals to maximise
revenue streams. The Manager also monitors asset performance to ensure asset
availability for revenue contracts. The Manager is responsible for managing
relationships with stakeholders, monitoring technical performance and
maximising asset availability. The team is also responsible for monitoring and
integrating the Company’s health, safety, environmental, social and investment
objectives into the Company’s operations model.
Procurement and Construction
The Manager has an in-house procurement
team, with the legal and technical expertise to
negotiate all key contracts, for project engineering
and construction and obtaining warranties for
continued battery performance. The construction
and development team are responsible for
monitoring project construction and holding
relevant stakeholders accountable for cost
and quality control, and timeline management.
The team is also responsible for monitoring
and integrating the Company’s health, safety,
environmental, social and investment objectives
into the Company’s construction model.
Acquisition execution and onboarding of new assets/projects
The Manager’s team is comprised of professionals with experience in
finance, legal, asset construction, engineering, and operations. The Manager
oversees the acquisition process from bid to close. It is supported by
third parties to assist with due diligence and remove biases in assessing
opportunities. Transactions are designed in a manner that allocates project
risks pursuant to the Company’s investment policy. The Manager is also
responsible for monitoring and integrating the Company’s health, safety,
environmental, social and investment objectives into the Company’s
acquisition model.
Asset identification and assessment
The Manager has assessed hundreds of projects
since the Company’s IPO to select opportunities
that meet the Company’s investment policy. As part
of its assessment of investment opportunities, the
Manager routinely runs market analyses on each
grid network within its geographical mandate. The
Manager’s team also works with local advisors to
evaluate the regulatory environment applicable to
each grid operator. The Company has established
a strong network of project developers with a deep
understanding of early-stage project development to
ensure that projects identified for investments meet
or will meet land, planning and grid energisation
requirements by the time of acquisition. The
Manager has designed the Company’s
portfolio to be geographically diverse
with flexibility in mind so the Company
can acclimate to regulatory and
technological changes.
1
2
3
4
Acquisition
execution and
onboarding
Procurement
and
Construction
Performance Optimisation,
Responsible management,
and monitoring
Asset
identification
and assessment
Strategic Report
Annual Report for year ended 31 March 2025
31
The Investment Process
The Manager is responsible for deal origination, execution,
and asset management of the portfolio in accordance with the
Company’s investment objectives and policy. The Board has
delegated authority to the AIFM to acquire or dispose of assets
without seeking further approval from the Board provided that
the Board is given the opportunity to consider each acquisition
or disposal before it is concluded.
Once a potential project which falls within the Company’s
investment policy has been identified, and the Manager
wishes to proceed, its Investment Committee reviews the
project. Investment Committee approval is required to confirm
that financial, legal, and technical diligence suggests that
the proposed transaction is consistent with the Company’s
investment policy.
Investment manager’s capability
MARKET LEADERSHIP
The Manager was one of the first movers to deploy privately
owned grid-scale battery projects in GB. It was also one of the
first to successfully enter and deliver services in the energy
storage market in Ireland, where the Company continues to hold
a substantial market share. The Company has also entered energy
markets in Germany, Texas and California.
The Manager is comprised of industry experts and financial
professionals. They use their collective expertise and work
collaboratively alongside industry leaders on system design,
procurement, and asset construction. The investment
management and commercial management teams have a
collective 170 years of experience working in the sector.
Integration of ESG into the investment
process
Energy storage is a critical piece of the infrastructure used to
solve the challenge of intermittency of supply from weather-
dependent, variable renewable energy sources, against
predictable demand patterns. As a pure-play energy storage
fund, the Company takes pride in its contribution to supporting
clean energy ambitions for increased integration of renewable
energy into global power systems.
As a company focused on supporting the shift to low carbon
energy generation, the Company also seeks to include
environmental, social and governance (“ESG”) considerations
in the investment process, as well as on an ongoing basis when
managing the assets. This is highlighted in the investment model
above.
The Company reports on this in more detail in its ESG and
Sustainability Report 2024 published here: 2024-gore-
street-energy-storage-fund-esg-and-sustainability-report.
pdf (gsenergystoragefund.com). The report for the year ended
31March 2025 is due to be published in September 2025.
Its SFDR Annex IV report is included on page 89.
On an ongoing basis, the Company seeks to engage with its
stakeholders, as described in the s.172 statement below.
Investment policy
The Company invests in a diversified portfolio of utility scale
energy storage projects. Individual projects are held within
special purpose vehicles into which the Company will invest
through equity and/or debt instruments. Typically, each
special purpose vehicle holds one project but there may be
opportunities where a special purpose vehicle owns more
than one project. The Company will typically seek legal and
operational control through direct or indirect stakes of up
to 100 per cent. in such special purpose vehicles, but may
participate in joint ventures or acquire minority interests where
this approach enables the Company to gain exposure to assets
within the Company’s investment policy which the Company
would not otherwise be able to acquire on a wholly-owned
basis. In such circumstances the Company will seek to secure
its shareholder rights through the usual protective provisions in
shareholders’ agreements and other transactional documents.
The Company currently intends to invest primarily in energy
storage projects using lithium-ion battery technology as such
technology is considered by the Company to offer the best risk/
return profile. However, the Company is ultimately agnostic
as to which energy storage technology is used by its projects
and will monitor projects with alternative battery technologies
such as compressed air technologies, and will consider such
investments (including combinations thereof) where they meet
the investment policy and objectives of the Company.
The Company may invest cash held for working capital purposes
and pending investment or distribution in cash or near-cash
equivalents, including money market funds.
The Company enters into hedging arrangements as appropriate to
seek to manage its exposure to foreign currency risks associated
with capital expenditure, interest rate risk and risks relating to
power prices as well as repayment of intra-Group debts. The
Company will not enter into derivative transactions for speculative
purposes.
The Company invests with a view to holding assets until the end of
their useful life. However, assets may be disposed of or otherwise
realised where the Investment Manager determines in its
discretion, that such realisation is in the interests of the Company.
Such circumstances may include (without limitation) disposals for
the purposes of realising or preserving value, or of realising cash
resources for reinvestment or otherwise.
Investment restrictions and spread of risk
The Investment Manager must manage the Company in line with
the investment policy and the following restrictions.
The Company does not have any borrowing restrictions in its
Articles but the Directors intend that the Company will maintain
a conservative level of borrowings with a maximum level of
Aggregate Group Debt of 50 per cent. of Gross Asset Value at
the time of drawdown of the relevant borrowings.
The Directors wish to clarify that, notwithstanding the above
flexibility, the Board’s gearing policy will firmly limit borrowings
to no more than 30 per cent. of gross assets at any time. If in the
future the Directors views on this policy were to change, they will
revert to shareholders for further approval.
Strategic Report
32
Gore Street Energy Storage Fund plc
For these purposes, the “Gross Asset Value” shall mean the
Company’s Net Asset Value increased by the amount of the
Aggregate Group Debt.
The Net Asset Value is the value of all the assets of the Company
less its liabilities, determined in accordance with the accounting
principles adopted by the Company from time to time.
The “Aggregate Group Debt” is the Group’s proportionate share
of the outstanding third-party interest bearing borrowings of any
Group companies and any non-subsidiary companies in which
the Group holds an interest.
It is intended that debt will be secured at asset level or SPV
level, with parental company guarantees or other collateral
security, if any, provided at Company level. Debt arrangements
will ultimately depend on the structure adopted by the Company,
having consideration to key metrics including lender diversity,
debt type and maturity profiles.
It is the Company’s intention that no single project will have
an acquisition price greater than 20 per cent. of Gross Asset
Value (calculated at the time of acquisition). However, to retain
flexibility, the Company will be permitted to invest in any single
project (or interest in any project) that has an acquisition
price of up to a maximum of 25 per cent. of Gross Asset Value
(calculated at the time of acquisition).
The Company will target a diversified exposure with the aim of
holding interests in no fewer than 10 separate projects at any
one time once fully invested.
The Company may invest in projects in GB, Ireland, North
America, Western Europe, Australia, Japan and South Korea,
although it does not intend that the aggregate value of
investments outside GB and Ireland will be more than 60 per
cent. of Gross Asset Value (calculated at the time of investment).
Additionally, given the flexibility of batteries as an energy storage
technology, revenue diversification can be achieved through the
potential to “stack” a number of different income streams with
different counterparties, contract lengths and return profiles
through one project, such as frequency regulation services to grid
operators, as well as wholesale arbitrage to profit from intra-day
wholesale electricity prices.
The Company will further aim to achieve diversification within
the Company’s portfolio through the use of a range of third-party
providers, insofar as appropriate, in respect of each energy storage
project such as developers, EPC contractors, O&M contractors,
battery manufacturers, asset managers, landlords and sources of
revenue. In addition, each MW of a typical energy storage project
will contain a battery system which has a number of battery
modules in each stack, each of which is independent and can be
replaced separately, thereby reducing the impact on the project as a
whole of the failure of one or more battery modules.
The Company will not invest in any projects under development
so that, save in respect of final delivery and installation of the
battery systems, all other key components of the projects are in
place before investment or simultaneously agreed at the time of
investment (such as land consents, grid access rights, planning,
and visibility of EPC and revenue contracts).
The Company will not invest in other listed closed-ended
investment funds.
The Company must not conduct any trading activity which is
significant in the context of its group as a whole.
These investment restrictions were not breached during the year.
Spread of risk is achieved using
geographic, asset and revenue
diversification
Assets are diversified across different stages (operation, under
construction and pre-construction), and through the ability to
participate in different services, with most of the sites expected
to generate revenue from more than one contract. Furthermore,
the portfolio is spread across five different geographical grids.
Revenue diversification is also achieved through the potential to
“stack” several different income streams in one battery, allowing
the Company to spread risks across different counterparties,
contract lengths and maintain varying return profiles. The
Company aims to maintain similar diversification across third-
party service providers and works with a variety of developers,
EPC contractors, O&M contractors, battery manufacturers, asset
managers and route-to-market providers.
The Company may invest in projects in GB, Ireland, North America,
Western Europe, Australia, Japan, and South Korea, although it
does not intend that the aggregate value of investments outside
GBand Ireland, will be more than 60 per cent. of Gross Asset Value
(calculated at the time of investment).
The Company holds and operates a diversified portfolio of
lithium-ion energy storage assets across five markets, including
753.4 MW of energised assets and 494.8 MW projects at the
pre-construction or construction phase. Lithium-ion batteries
deliver multiple grid balancing and power quality services
to power grids and present power trading opportunities.
Consequently, batteries generate multiple revenue streams.
Itis the Company’s intention that no single project or interest
in any project will have an acquisition value of greater than
20 per cent. of Gross Asset Value of the Group as a whole
(calculated at the time of acquisition). Geographical and revenue
contracting risks will be diversified between GB, Ireland, Texas,
California, Germany, and potentially other target markets.
As at the end of the year the Company held 28 projects, with
assets in four countries across five grids, and benefitted from
over 20 revenue sources.
Currency Exposure Management
The Company enters into hedging arrangements as appropriate
to manage its exposure to foreign currency, ensure repayment
of capital expenditure, protect against interest rate hikes, and
efficiently manage operating cash flow to ensure repayment of
intra-Group debts.
Gearing
The Board and the Investment Manager periodically review
the Company’s gearing policy to ensure that it is accretive to
shareholders and in line with the financing needs of the Group’s
expanding portfolio.
During the period the Company successfully increased the
revolving credit facility with Santander Group, held by the
Strategic Report
Annual Report for year ended 31 March 2025
33
Company’s subsidiary GSES 1 Limited, from £50 million
to £100million to support the buildout of the Company’s
in-construction assets, including potential duration expansions
or the ability to consider building out additional capacity
from the Company’s pipeline. The Company also secured an
upsize from the initial $60m to $90m in debt finance at asset
level to support the 200 MW/400MWh Big Rock project,
following successful completion of construction milestones.
Notwithstanding the investment restrictions, the Company
continues to apply a firm borrowing limit of no more than
30percent. of Gross Assets Value at any time.
In keeping with the guidance previously provided to the market,
Aggregate Group Debt is not expected to exceed c.15-20% of the
current GAV to complete the build out of the prioritised portfolio.
Promoting the Company
The Company’s shares are traded on the Main Market of the
London Stock Exchange and are available for purchase from a
range of stockbrokers. The Company promotes its shares through
the Manager and the Joint Brokers, who meet with existing and
potential shareholders on a regular basis at one-to- one meetings,
roadshows and conferences.
The Investment Manager is available at all reasonable times
to meet with principal shareholders and key sector analysts.
Shareholders are encouraged to send questions to the Board
by contacting cosec@gorestreetcap.com, and meetings with
the Chair or other Board members are offered to professional
investors where appropriate.
Purpose, Values and Culture
PURPOSE
In line with its investment objective, the Company’s purpose is
to deliver income and long-term capital growth to its investors by
the development of a geographically diverse portfolio of utility-
scale battery storage systems that are a critical component in
accelerating the transition to a lower carbon economy.
In addition to delivering financial returns to investors, the Company’s
underlying operations are designed to support the environmental
sustainability of global grid systems. The Board and the Manager
understand that the Company has a broader responsibility to go
beyond its environmental contributions and to evaluate how best
to integrate and improve the environmental, social and governance
frameworks of its investments and operations.
VALUES
The Company’s values are aligned to its purpose and to the
standards expected of a Company listed on the Main Market of
the London Stock Exchange.
The Company’s core values are:
• To focus on the long-term sustainability of the business.
• To act openly and transparently with all stakeholders,
fostering long-term relationships with transparency.
• To combine entrepreneurial agility with the strength of a
listed company to reliably execute the Company’s purpose
and deliver its investment objective.
CULTURE
As the Company does not have employees, the Board’s focus
is on ensuring the Company’s key service providers are well
governed and have the right resources to deliver the services
they provide for the Company. In addition, the Board reviews
key service providers’ strategies and policies relating to
Environmental Sustainability, Social Impact and Governance to
ensure they are in line with the Company’s purpose and values.
In line with its zero-tolerance policy towards bribery, corruption,
financial crime and tax evasion, the Board reviewed statements
or policies from key service providers on anti-bribery and
corruption; and tax evasion. In addition the Board has reviewed
key service providers’ statements or policies on the Modern
Slavery Act 2015; equity, inclusion and diversity; and carbon
footprint, including greenhouse gas and energy usage reporting.
Energy storage is a relatively new area of investment. The
Board’s aim is to help ensure that the Manager is not only
meeting the industry standards but also aims to be a market
leader and demonstrate best practices when it comes to
engagement and responsibilities towards its stakeholders.
Strategic Report
34
Gore Street Energy Storage Fund plc
Corporate and Social Responsibility
DIVERSITY
As at 31 March 2025, the Board comprised of three men and
two women. No members of the Board were from an ethnic
minority background.
The Company has adopted a diversity and inclusion policy.
It applies to Board and committee appointments. Diversity
includes and makes good use of differences in knowledge,
and understanding of relevant diverse geographies, peoples,
and their backgrounds including race or ethnic origin, sexual
orientation, gender, age, disability, religion or socio-economic,
educational or professional background. Appointments to the
Board will be made on merit and objective criteria, in the context
of complementing and expanding the skills, knowledge and
experience of the Board as a whole.
As the Company is an investment trust with no employees
or senior management, and a small number of Directors, it
will aim to meet the board diversity targets set out in Listing
Rule6.6.6R(9) where possible.
As at 31 March 2025, the Company had not met the targets
relating to Board diversity relating to the number of individuals
from a minority ethnic background. Please refer to the
Remuneration and Nomination committee report for details of
upcoming recruitment.
Listing Rule 6.6.6R(10) requires the Company to specify Board
diversity as broken down by gender identity or sex, and ethnic
background. The Directors provide this information to the
Company. The tables below detail this. As an investment trust,
with no executive management, the Company does not include
columns relating to executive management in the tables below.
Number
of Board
members
Percentage
of the Board
Number of
senior positions
on the Board
(SID and Chair)
Men 3 60% 1
Women 2 40% 1
Not specified/ prefer
not to say
0 0% 0
Number
of Board
members
Percentage
of the Board
Number of
senior positions
on the Board
(SID and Chair)
White British or other
White (including
minority-white groups)
5 100% 2
Mixed/ Multiple
Ethnic Groups
0 0% 0
Asian/ Asian British 0 0% 0
Black/ African/
Caribbean/ Black British
0 0% 0
Other ethnic group,
including Arab
0 0% 0
Not specified/
prefer not to say
0 0% 0
RELATIONS WITH SHAREHOLDERS
The Company places great importance on communication with
its shareholders and welcomes the views of shareholders. In
addition to the meetings and engagement with shareholders
described above, the Directors all attend the AGM and are
available to respond to questions from shareholders.
The Board receives comprehensive Shareholder reports from
the Company’s Registrar and regularly monitors the views of
Shareholders and the Shareholder profile of the Company.
The Board is also kept fully informed of all relevant market
commentary on the Company by the Manager. Shareholders
may also find Company information or contact the Company
through its website: www.gsenergystoragefund.com
GREENHOUSE GAS EMISSIONS REPORTING
The Board has considered the requirement to disclose the
Company’s measured carbon emissions sources under The
Companies Act 2006 (Strategic Report and Directors’
Report) Regulations 2013. The Company is a closed-ended
investment company which has no employees and so its own
direct environmental impact is minimal. It identifies as a low
energy user (less than 40,000 KWh/year). However, the
Company published a Sustainability Report for the year ended
31 March 2024 which included emissions and energy usage
data for the Company’s underlying investments: 2024-gore-
street-energy-storage-fund-esg-and-sustainability-report.pdf
(gsenergystoragefund.com).
The Company’s SFDR Annex IV report is included on page 89.
Section 172 Statement
The Directors have had regard for the matters set out in
section172(1)(a) and (c) to (f) of the Companies Act 2006
when performing their duty under section 172. Subsection
(b) is not applicable to the Company as it has no employees.
The Directors consider that they have acted in good faith in
the way that would be most likely to promote the success of
the Company for the benefit of its members as a whole, while
also considering the broad range of stakeholders who interact
with and are impacted by its business, especially with regard to
principal decisions.
In doing the above, the Directors have taken into account the
following:
(a) the likely consequences of any decision in the long-term;
(b) the need to foster the Company’s business relationships with
suppliers, customers and others;
(c) the impact of the Company’s operations on the community
and the environment;
(d) the desirability of the Company maintaining a reputation for
high standards of business conduct; and
(e) the need to act fairly as between members of the Company.
Strategic Report
Annual Report for year ended 31 March 2025
35
KEY STAKEHOLDERS
Stakeholder Why they are important and how the Company engages with them
Shareholders Shareholders own the Company and the Board is focused on delivering shareholder returns in line
with the investment policy. Shareholders and prospective investors are also key to implementing
the Company’s strategy. Engagement activities include obtaining shareholder and prospective
investor buy-in for delivery of strategic objectives.
The Company will continue to engage with shareholders in future either directly or via the
Company’s brokers and Manager.
The Manager (Investment Manager and
Commercial Manager)
The Investment Manager is responsible for the development and implementation of the
investment strategy, including the acquisition, origination, and execution of projects. The
Commercial Manager is responsible for management of the assets. Together they work to help the
Company meet the expectations of its investors.
The Board and the Manager maintain an ongoing open dialogue on key issues facing the
Company. This open dialogue takes the form of regular and ad hoc board meetings and more
informal contact, as appropriate.
Service providers and contractors The Company engages service providers who provide management, administration and other
services. The intention is to maintain long-term and high-quality business partnerships to ensure
stability while the Company pursues its growth strategy.
The Company and its investments are reliant on the Manager selecting reputable suppliers and
experienced O&M service providers. The failure of any of the Group’s suppliers (including EPC
contractors and O&M service providers) may result in closure, seizure, enforced dismantling or
other legal action in respect of the Group’s projects.
Subcontractors and
the project supply chain
The Company’s service providers and contractors are dependent on other service providers and
suppliers. The Company is mindful that its subcontractors and project supply chain can affect the
Company.
The Company selects contractors adhering to the highest standards in their respective fields and
requests reporting on the application of those standards on a regular basis.
Regulators, governments and grid operators The Company is subject to regulations in each of the geographies it operates in. The Board
regularly considers how it meets regulatory and statutory obligations and follows voluntary and
best practice guidance, including how any governance decisions it makes impact its stakeholders
both in the short and long term. The Manager engages with regulators and grid operators on the
Company’s behalf.
Local communities and
the environment
The Board recognises the importance of the communities in which the Company operates. As the
Company develops assets closer to communities, it will ensure that its environmental and social
footprint takes account of the local communities and is sympathetic to the locality, taking account
of local views which will be obtained via the planning process.
PRINCIPAL DECISIONS
Decision Stakeholder considerations
Capital management and debt financing
After careful consideration the board agreed to increase the use of
conservative debt financing to fund the continued development of the
Company’s projects.
The Company’s existing revolving credit facility with Santander was
increased from £50 million to £100 million. In addition, the Big Rock
asset secured an increase from $60 million to $90 million in debt finance
from First Citizens Bank to support the remaining capital costs of the Big
Rock project.
Prudent capital management, including the use of conservative debt,
is beneficial for shareholders, increasing returns on investment and
accelerating revenue generation opportunities from bringing new assets
online. Stronger relationships with the Company’s lenders are mutually
beneficial and lead to greater understanding of the Company by the
lenders and the ability to potentially work together in future.
12 year fixed stackable contract
Big Rock entered into a fixed-price Resource Adequacy (“RA”) contract
with J. Aron & Company LLC, worth over $14 million annually. The
contract is fully stackable to allow for concurrent revenue streams from
wholesale trading and ancillary services.
The RA contract accounts for up to 40% of the total expected revenue
of the asset and supported the securing of project-level debt, due to the
long-term fixed-price nature.
Long-term fixed-price contracts provide a substantial portion of total
revenue in the market and revenue diversification. The contract delivers
stable substantial returns that will benefit the shareholders.
The Company and its shareholders also benefit from the support that a
long-term fixed-price contract lends to securing project-level debt.
Engaging J. Aron & Company LLC, a wholly owned subsidiary of Goldman
Sachs, on a long-term contracts basis encourages long-term business
partnerships that will continue to benefit the Company, its shareholders
and its partners.
Strategic Report
36
Gore Street Energy Storage Fund plc
Investment Tax Credit (ITC) sales
The Company entered into an agreement for the sale of the ITC
for its Texas asset Dogfish, for a consideration of £18-19 million
($23-25million) of gross proceeds, before transaction costs. This
included the decision to hedge $20 million at an exchange rate of
1.30USD/GBP. The proceeds were received after the year end.
After the year end the Company also entered into an agreement for the
sale of the ITC for its California asset Big Rock, as detailed in Chair’s
Statement and Investment Manager’s report.
The Board is mindful, when making decisions regarding the allocation
of excess cash, of the need to balance short-term returns, through the
payment of dividends, and longer-term growth, delivered by continuing to
invest in a diversified portfolio and through debt repayment.
Management fee reduction
A review of the investment management fees was conducted by the
board. Under the Alternative Investment Fund Manager (AIFM) Agreement
management fees would be calculated as 1% per annum of the average
(50:50) of market capitalisation and adjusted net asset value (NAV),
subject to a cap of 1% of adjusted NAV. The performance fee would be
removed. There would be no change to the notice period of 12 months
and the termination fee in the event of a takeover would be removed.
The fee reduction would be implemented from 1 October 2025.
Following extensive shareholder consultation and when reviewing the
AIFM contract as part of the annual management engagement process
the board determined that a revision in fee structure to include an
element based on market capitalisation would result in greater long-term
alignment with shareholders. The net reduction would also enhance
shareholder value.
During the process the board maintained an open dialogue with the
Manager and both parties agreed that a revision of the fees payable under
the AIFM was beneficial for shareholders.
Payment of dividends
Dividend payments are approved by the board on a quarterly basis based
on recommendations from the Manager and supported by analysis from
the Administrator.
The support includes considering the level of distributable reserves,
debt reliance and cash flow projects. Taking this into consideration the
board approved a dividend of 1.0p per ordinary share for the March-end
2025 quarter and expects to declare a further 3p special dividend to
be distributed following the receipt of proceeds from the sale of the
Investment Tax Credit for Big Rock, subject to any unforeseen factors.
Further details are included in the Chair’s Statement.
In line with the Investment Objective a key area of focus for the board is to
deliver a sustainable return to shareholders.
The Board’s decision to distribute a special dividend recognises the need
for appropriate capital management by minimising the Company’s debt
and associated costs, while also meeting shareholders’ expectations
through sustainable equity returns.
Strategic Report
Annual Report for year ended 31 March 2025
37
Risk Management and Internal Control
The Board is responsible for the Company’s system of risk management and internal control and for reviewing its effectiveness. The
Board has adopted a detailed matrix of principal risks affecting the Company’s business as an investment trust and has established
associated policies and processes designed to manage and, where possible, mitigate those risks, which are monitored by the audit
committee on an ongoing basis. This system assists the Board in determining the nature and extent of the risks it is willing to take
in achieving the Company’s strategic objectives. The Board also receives reporting on the financial, operational, reporting and
compliance controls. Both the principal risks and the monitoring system are subject to robust review at least annually. The last review
took place in July 2025.
Although the Board believes that it has a robust framework of internal controls in place this can provide only reasonable, and not
absolute, assurance against material financial misstatement or loss and is designed to manage, not eliminate, risk.
Actions taken by the Board and, where appropriate, its committees, to manage and mitigate the Company’s principal risks and
uncertainties are set out in the table below.
*The “Change” column on the right highlights at a glance the Board’s assessment of any increases or decreases in risk during the year
after mitigation and management. The arrows show the risks as increased or decreased.
EMERGING RISKS AND UNCERTAINTIES
During the year, the Board also received reporting on potential emerging risks and discussed and monitored risks that could potentially
impact the Company’s ability to meet its strategic objectives. Political risk which includes regulatory, fiscal and legal changes impacting
strategy, and potential changes to national and cross-border energy policy, as well as the application of trade tariffs, was assessed to
be a matter to keep under consideration.
The Board has determined they are not currently sufficiently material for the Company to be categorised as independent principal
risks. The Board receives updates from the Manager, Company Secretary and other service providers on other potential risks that
could affect the Company. The Board also considered the uncertainties caused by an uncertain economic outlook, volatile energy
prices and the conflicts in Ukraine, Gaza and Iran, although they are not factors which explicitly impacted the Company’s performance.
PRINCIPAL RISKS AND UNCERTAINTIES
Risk Description Mitigation and Management Change*
Changes to
Market Design
The Company’s assets generate revenue by delivering
balancing services to power grid operators in the United
Kingdom, Ireland, Germany, Texas and California. There
is a risk in any of those markets that unanticipated
changes to the design of the grid, power system services
or any change in the specifications and requirements for
service delivery (including network charges or changes
to market rules) could negatively impact cash flow or
constrain revenue projections for assets within the region
in which a change occurs and thereby reduce the net
asset value of the affected assets.
The Company has assets in five grids to mitigate the
impact of one grid’s changes.
In addition, the Manager aims to stack revenue
contracts to vary the types of income streams received
from each system operator and within each market to
mitigate against revenue risk.
↔
Inflation The Company’s profit projections are based in part on
its budget for capital and operating expenditure incurred
in the construction, operation, and maintenance of
its portfolio of battery storage assets. These include,
amongst other things, the cost of battery cells, inverters,
the cost of power required to charge the batteries and
the labour costs for operations.
There is a risk that unanticipated inflation will increase
capital expenditure and operating costs materially
beyond budget, without a commensurate impact on
revenues, with the consequence of reducing profitability
below the investment forecast and/or rendering projects
less economic or uneconomic.
There is also a risk that continued or severe inflation
could positively and/or negatively change the grid power
market design (see Changes to Market Design above).
The Company has little exposure to debt financing but
has access to debt facilities. There is a risk that increases
in the inflationary index rates could render the interest
rates applicable to these debt facilities less economic or
uneconomic.
The Company ensures that it generates revenues in
the markets in which it incurs operating costs from a
diverse mix of short, medium and long-term contracts
that are subject to fixed or floating contract prices.
As revenues are pegged to operating expenditure,
the Company shall aim to neutralise inflationary
increases (e.g., cost of power to charge the batteries)
by rebalancing its revenue services (e.g., changing the
timing or bases for charging batteries to either reduce
costs or increase revenues) as appropriate to maintain
its investment forecast. The long-term Capacity Market
contracts of up to 15 years are index linked.
↔
Strategic Report
38
Gore Street Energy Storage Fund plc
Risk Description Mitigation and Management Change*
Exposure to
Lithium-Ion
Batteries, Battery
Manufacturers
and technology
changes
The portfolio currently consists only of lithium-ion
batteries. The Group’s battery energy storage systems
are designed by a variety of EPC providers, but the
underlying lithium-ion batteries are manufactured
primarily by BYD, CATL and LG Chem. While the
Company considers lithium-ion battery technology to be
the most efficient and most competitive form of storage
in today’s market, there is a risk that other technologies
may enter the market with the ability to provide similar or
more efficient services to power markets at comparable
or lower costs, reducing the portfolio’s market share of
revenues in the medium or long term. There is also a risk
that batteries might be unavailable due to delays caused
by supply chain issues or local trade restrictions.
The Company remains technology agnostic and
continues to evaluate other economically viable
energy storage opportunities to reduce its exposure to
lithium-ion and further diversify its portfolio mix. The
Company is mindful of the ESG risks associated with
the production and recycling of batteries.
The Company is not under an exclusivity agreement
with any individual battery manufacturer and will
manage its supply framework agreements in a manner
that allows it to take advantage of any improvements
or amendments to new storage technologies as they
become commercially viable, as well as mitigating any
potential supply chain issues or local trade restrictions.
↔
Service Provider The Company has no employees and has delegated certain
functions to several service providers, principally the
Manager, Administrator, depositary and registrar. Failure
of controls, and poor performance of any service provider,
could lead to disruption, reputational damage or loss.
Service providers are appointed subject to due
diligence processes and with clearly documented
contractual arrangements detailing service
expectations.
Regular reports are provided by key service providers
and the quality of their services is monitored. The
Directors also receive presentations from the Manager,
depositary and custodian, and the registrar on an
annual basis.
Review of annual audited internal controls reports
from key service providers, including confirmation of
business continuity arrangements and IT controls, and
follow up of remedial actions as required.
↔
Valuation of
Unquoted Assets
The Company invests predominantly in unquoted assets
whose fair value involves the exercise of judgement
by the Investment Manager. There is a risk that the
Investment Manager’s valuation of the portfolio may be
deemed by other third parties to have been overstated or
understated.
The Investment Manager routinely works with
market experts to assess the reasonableness of key
data used in the asset valuation process (such as
revenue and inflation forecasts) and to reassess its
valuations on a quarterly basis. In addition, to ensure
the objective reasonableness of the Company’s NAV
materiality threshold and the discount rates applied, an
independent valuer, BDO, values a sample of portfolio,
representing a large proportion of the portfolio, with
input from the Investment Manager. The auditors, EY,
review the valuations as part of the year end audit
and half year review, to ensure they are within an
acceptable range.
↔
Delays in Grid
Energisation or
Commissioning
The Company relies on EPC contractors for energy
storage system construction, and on the relevant
transmission systems and distribution systems’ owners
(TSO) for timely energisation and connection of that
battery storage asset to the transmission and distribution
networks appropriately.
There is a risk that either the EPC contractor or relevant
TSO could delay the target commercialisation date
of an asset under construction and negatively impact
projected revenues.
The Company works closely with EPC contractors to
ensure timely performance of services and imposes
liquidated damage payments under the EPC contracts
for certain delays in delivery.
The Company seeks commitments from TSOs to
a target energisation date as a condition to project
acquisition and provides maximum visibility on
project development to TSOs in order to encourage
collaboration towards that target energisation date.
The Manager factors in delays by adjusting the
valuation on an ongoing basis.
↔
Currency
Exposure
The Company is the principal lender of funds to Group
assets (via intercompany loan arrangements) for their
investments in projects, including projects outside of
the UK. This means that the Company may indirectly
invest in projects generating revenue and expenditure
denominated in a currency other than Sterling, including
in US Dollars and Euros. There is a risk that the value of
such projects and the revenues projected to be received
from them will be diminished as a result of fluctuations in
currency exchange rates. The diminishing in value could
impact a subsidiary’s ability to pay back the Company
under the intercompany loan arrangements.
The Company acts as guarantor under currency hedge
arrangements entered into by impacted subsidiaries
to mitigate its exposure to Euros and US Dollars.
The Company will also guarantee future hedging
arrangements as appropriate to seek to manage its
exposure to foreign currency risks.
↔
Strategic Report
Annual Report for year ended 31 March 2025
39
Risk Description Mitigation and Management Change*
Cyber-Attack and
Loss of Data
The Company is exposed (through the server, software,
and communications systems of its primary service
providers and suppliers) to the risk of cyber-attacks that
may result in the loss of data, violation of privacy and
resulting reputational damage.
Among other measures, the Company ensures
its contractors and service providers, in addition
to implementing a proactive approach to taking
measures, incorporate firewalls and virtual private
networks for any equipment capable of remote access
or control. Cybersecurity measures are incorporated
for both external and internal (‘local’) access to
equipment, preventing exposure to ransomware
attacks or unsolicited access for any purpose. The
Company engages experts to assess the adequacy of
its cybersecurity measures and has implemented a
requirement for annual testing to confirm and certify
such adequacy for representative samples for the
entire fleet.
→
Physical and
transitional
climate-related
risks
The Company’s assets are located in several different
countries, some of which experience extreme weather,
which could have a physical impact on the assets and as
a result affect shareholder returns.
Climate change may also affect the development of
technologies, markets and regulations.
The Manager’s due diligence and site design processes
factor in climate change-related risks when selecting
sites and assets and designing systems to operate
within a range of temperatures.
The Manager reports to the Board on developments
in these areas regularly, including recommendations
for the Company to acclimate to technological, market
or regulatory change, including any driven by climate
change.
↔
RISK ASSESSMENT AND INTERNAL CONTROLS FRAMEWORK REVIEW BY THE BOARD
Risk assessment includes consideration of the scope and quality of the systems of internal control operating within key service
providers, and ensures regular communication of the results of monitoring by such providers to the audit committee, including the
incidence of significant control failings or weaknesses that have been identified at any time and the extent to which they have resulted
in unforeseen outcomes or contingencies that may have a material impact on the Company’s performance or condition.
No significant control failings or weaknesses were identified from the audit committee’s ongoing risk assessment which has been in
place throughout the financial year and up to the date of this report. The Board is satisfied that it has undertaken a detailed review of
the risks facing the Company.
The Board is satisfied that the material controls operated effectively during the year and for the period up to and as at 16 July 2025.
A full analysis of the financial risks facing the Company is set out in note 17 to the Financial Statements on pages 76 to 78.
Strategic Report
40
Gore Street Energy Storage Fund plc
GOING CONCERN
In assessing the going concern basis of accounting the Directors
have had regard to the guidance issued by the Financial
Reporting Council. After making enquiries and bearing in mind
the nature of the Company’s business and assets, the Directors
consider the Company to have adequate resources to continue
in operational existence over the period to 30 September
2026, being at least 12 months from the date of approval of
the financial statements. As such, they have adopted the going
concern basis in preparing the annual report and financial
statements.
As at 31 March 2025, the Company had net current assets of
£9 million and had cash balances of £9.6 million (excluding
cash balances within investee companies), which are sufficient
to meet current obligations as they fall due. The Company had
no contingencies and significant capital commitments as at
the 31 March 2025. The Company is a guarantor to GSES1
Limited’s revolving credit facility with Santander. During the year
this facility was upsized from £50m to £100m, with an extended
term to 2028. The Company also upsized the project-level debt
with First Citizens Bank to complete the buildout of the 200 MW
Big Rock project, from an initial $60m to $90m. The Aggregate
Group Debt as of 31 March 2025 was at 17.8% of GAV with
£56.3 million in debt headroom available. There is no debt held
at the Company level.
Financial forecast models have been reviewed for the going
concern period which consider available cash and existing debt
capacity at the start of the period and key financial assumptions
at the Company level as well as at the project level. These
financial assumptions include expected remaining capital
expenditure on portfolio companies and cash generated by the
portfolio companies available to be distributed to the Company,
as well as ongoing administrative costs for the Company and
intermediary holding companies. Expected inflows and outflows
(including interest repayments) on the external debt facility at
GSES 1 level and the project-level debt in California are also
considered.
As part of the going concern assessment the Directors have
modelled downside scenarios considering potential changes
in trading performance. The Directors consider the following
scenarios:
• A base case scenario based on a blended average mid-case
scenario from third-party consultants;
• Although a simultaneous reduction in project companies’
revenue across the five grids they operate is not considered
likely, a plausible 20% average reduction in base case
revenue has been considered as a downside scenario.
This analysis shows that, under both the base case and
downside scenarios, the Company is expected to have
comfortably sufficient financial resources available to meet
current obligations and commitments as they fall due for at
least 18 months until 30 September 2026. The Directors
acknowledge their responsibilities in relation to the financial
statements for the year ended 31 March 2025 and the
preparation of the financial statement on a going concern basis
remains appropriate and the Company expects to meet its
obligations as and when they fall due for at least 18 months until
30 September 2026.
LONG TERM VIABILITY
In reviewing the Company’s viability, the Directors have
assessed the prospects of the Company over a period of five
years to 31 March 2030. After assessing the risks, which
include emerging risks like climate change and reviewing the
Company’s liquidity position, together with the forecasts of
performance under various scenarios, the Directors have
a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities over the period of
five years. In making this statement, the Directors have reviewed
cash forecasts over this period, taking into consideration base
case expectations and potential downside scenarios. The
Directors have also considered the current low leverage of the
Company and its subsidiaries and its capacity and ability to raise
further debt up to 30% of Gross Asset Value per internal policy.
Further, the directors believe that refinancing of the existing
debt facilities ahead of current maturity dates is reasonably
feasible based on the level of debt relative to the portfolio. The
diversified nature of the portfolio, across five different grids, has
been taken into account when assessing concentration of any
prolonged downturns to the portfolio. In addition, mitigating
actions under severe downside scenarios have been considered,
such as the discretionary nature of dividends and ability to
delay uncontracted capital expenditure on build out of pre-
construction phase projects in the portfolio.
This assessment has not considered the potential for further
fundraising through equity markets.
By order of the Board
Gore Street Services Limited
Company Secretary
16 July 2025
Strategic Report
Annual Report for year ended 31 March 2025
41
Governance
41
Annual Report for year ended 31 March 2025
Governance
42
Gore Street Energy Storage Fund plc
Pat Cox
Status: Independent Non-Executive Chair
Length of service: seven years – appointed in
February 2018
Experience:
Mr Cox has significant board experience and is
currently a member of the Appointment Advisory
Committee for the European Investment Bank,
Chair of Ecocem Ltd, and holds non-executive
directorships of Supernode Ltd and Gresham
House Ireland Asset Management Ltd. He also
sits on the Boards of various think tanks and not-
for-profit organisations, including the Institute
for International and European Affairs, Ireland,
the Third Age Foundation Ireland and the Jean
Monnet Foundation for Europe.
Mr Cox served as a Member of the European
Parliament for Munster, Ireland, from 1989 to
2004, becoming the leader of its Liberal Democrat
Group from 1998 to 2002 before holding the
presidency of the European Parliament between
2002 and 2004. He has been bestowed National
Honours by the Presidents of nine European
countries, and is a Commander of the Legion of
Honour, France. His ongoing work includes serving
as European Coordinator for the Scandinavian-
Mediterranean TEN-T Core Network Corridor
and leading a parliamentary reform programme
withUkraine.
Mr Cox is a graduate of Trinity College, Dublin and
holds Honorary Doctorates from Trinity College
Dublin, the National University of Ireland, the
University of Limerick, the Open University, and
the American College Dublin.
Committee membership:
audit, management engagement (chair), and
remuneration and nomination committees
Annual remuneration:
£79,000 (with effect from 1 April 2024)
Number of shares held: 246,496
Caroline Banszky
Status: Senior Independent Non-Executive
Director
Length of service: seven years – appointed in
February 2018
Experience:
Ms Banszky is currently a non-executive director
of IntegraFin Holdings plc, where she chairs the
Audit and Risk Committee. Ms Banszky was
previously a director and member of the Finance
& Investment Committee of the Benefact Trust
Ltd, a non-executive director and chair of the Audit
and Compliance Committee of 3i Group plc and a
director of the UK Stem Cell Foundation.
Formerly the Chief Executive of The Law
Debenture Corporation plc from 2002 to 2016,
Ms Banszky was also Chief Operating Officer of
SVB Holdings plc (now Novae Group plc) – then
a Lloyd’s listed integrated vehicle – from 1997 to
2002 and Finance Director of N.M. Rothschild
& Sons Ltd from 1995 to 1997, having joined
the bank in 1981. She originally trained at what
is now KPMG and is a fellow of the Institute of
Charted Accounts of England and Wales.
Committee membership:
audit (chair), management engagement, and
remuneration and nomination committees
Annual remuneration:
£59,000 (with effect from 1 April 2024)
Number of shares held: 60,000
Max King
Status: Independent Non-Executive Director
Length of service: seven years – appointed in
February 2018
Experience:
Mr King’s varied career in financial services
includes over 30 years in investment
management. He was responsible for the
investments of seven investment trusts during
his decade-long tenure as investment manager
at Finsbury Asset Management before moving
to J O Hambro Capital Management, where
he was director and investment manager of
two investment trusts and a number of other
portfolios. From 2004 until 2016, Mr King worked
at Investec Asset Management where he was the
co-manager of various multi-asset funds invested
in internal and external funds, including closed-
ended funds.
A Chartered Accountant trained at Peat, Marwick
& Mitchell (now KPMG), he is currently a non-
executive director of Ecofin Global Utilities &
Infrastructure Trust plc and previously served
as a non-executive director of Henderson
Opportunities Trust.
Mr King, an economics graduate of Trinity College,
Cambridge, also writes regularly for MoneyWeek
and engages in several unpaid commitments.
Committee membership:
audit, management engagement, and
remuneration and nomination committees
Annual remuneration:
£49,000 (with effect from 1 April 2024)
Number of shares held: 80,000
The Board of Directors
Governance
43
Annual Report for year ended 31 March 2025
Tom Murley
Status: Independent Non-Executive Director
Length of service: seven years – appointed in
February 2018
Experience:
Mr Murley was a director at London-based private
equity firm HgCapital from 2004 to 2016, where
he established a renewable energy investment
fund business that went on to raise and invest over
$1bn in equity across more than 70 EU wind, solar,
biomass and hydroelectric projects. From 2016 to
2018 Mr Murley continued to act as Chairman and
Senior Advisor to the HgCapital Renewable Energy
team, which spun out to become Asper Investment
Management in December 2017.
In 2012 Mr Murley was appointed non-executive
director to the inaugural board of the UK Green
Investment Bank, where he also served on the
investment committee, and remained on the Board
until privatisation in August 2017. In October 2016
he was appointed as an independent non-executive
director of Ameresco Inc, a renewable energy and
energy efficiency company listed on the New York
Stock Exchange. Mr Murley currently sits on the
board of and serves as an independent investment
committee member for a private renewable energy
investment fund based in Jordan and Guernsey. He
also serves as the Chair and Investment committee
member of Innagreen One Investments Ltd and
JCM Power Ltd.
Mr Murley was a lawyer between 1993 and 2003
and later became Managing Director of EIF Group
in Boston Massachusetts, one of the first energy
infrastructure funds. He has a History degree
from Northwestern University in Evanston, Illinois,
and a Law Degree, with honours, from Fordham
University in New York.
Committee membership:
audit, management engagement, and
remuneration and nomination (chair) committees
Annual remuneration:
£49,000 (with effect from 1 April 2024)
Number of shares held: 75,000
Lisa Scenna
Status: Independent Non-Executive Director
Length of service: two years – appointed
May2023
Experience:
Lisa Scenna is an experienced executive and
non-executive director in listed and private sector
organisations across real estate, infrastructure,
construction and funds management in the UK,
Europe, Australia, Canada and Middle East.
She has held sector specific executive roles in the
property, infrastructure and fund management
sectors with Stockland and Westfield in Australia,
and Laing O’Rourke and Morgan Sindall Group in
the UK. She is currently a non-executive director
with Cromwell Property Group, Genuit Group plc,
Harworth Group plc and Ingenia Communities
Holdings Ltd.
Lisa has previously been non-executive director
for the charity Hub Community Foundation
and Deputy Chair for The Private Infrastructure
Development Group, a platform investing in
infrastructure on behalf of various government
agencies, including UK and Australia. Lisa is a
Fellow of Chartered Accountants Australia and
New Zealand and a Member of the Australian
Institute of Company Directors.
Committee membership:
audit, management engagement, and
remuneration and nomination committees
Annual remuneration:
£49,000 (with effect from 1 April 2024)
Number of shares held: 35,000
Governance
44
Gore Street Energy Storage Fund plc
Directors’ Report
The Directors submit their report and the audited financial
statements of the Company for the year ended 31 March 2025.
Directors and officers
CHAIR
The Chair is an independent non-executive Director, responsible
for leadership of the Board and ensuring its effectiveness.
TheChair’s other significant commitments are detailed on
page 42. He has no conflicting relationships.
SENIOR INDEPENDENT DIRECTOR (“SID”)
Caroline Banszky is the Board’s SID and has held the position
since July 2022. She acts as a sounding board for the Chair,
meets with major shareholders as appropriate, provides a
channel for any shareholder concerns regarding the Chair and
takes the lead in the annual evaluation of the Chair.
COMPANY SECRETARY
Gore Street Services Limited provides company secretarial
support and governance advice to the Board and Chair. The
Company Secretary is responsible for regulatory compliance and
supporting the Board’s continuing obligations with respect to
corporate governance.
The Company Secretary also manages the Company’s
relationship with the Company’s service providers, except for the
Investment Manager and the Commercial Manager.
Shareholders are invited to contact the Company Secretary with
any questions for the Board at cosec@gorestreetcap.com. Any
questions relating to individual shareholdings should be directed
to the Company’s Registrar at 0371 384 2030.
Role and operation of the Board
The Board (of five Directors, listed on pages 42 and 43) is
the Company’s governing body. The Board is responsible for
managing the business affairs of the Company in accordance
with the Articles, the Companies Act, any direction given by the
shareholders by special resolution and the investment policy.
Ithas overall responsibility for the Company’s activities including
its strategy and investment activities. The Board is collectively
responsible to shareholders for the Company’s long-term success.
The Board is responsible for appointing and subsequently
monitoring the activities of the Manager and other service
providers to ensure that the investment objective of the Company
continues to be met. The Board also ensures that the Manager
adheres to the investment restrictions set by the Board and
acts within the parameters it sets in respect of any gearing.
The Strategic Report on pages 1 to 41 sets out how the Board
reviews the Company’s strategy, risk management and internal
controls and also includes other information required for the
Directors’ Report, and is incorporated by reference.
A formal schedule of matters specifically reserved for decision
by the Board has been defined and a procedure adopted for
Directors, in the furtherance of their duties, to take independent
professional advice at the expense of the Company. The Chair
ensures that all Directors receive relevant management, regulatory
and financial information in a timely manner and that they
are provided, on a regular basis, with key information on the
Company’s policies, regulatory requirements and internal controls.
At the quarterly Board meetings Directors review investment
performance, asset management, construction and optimisation
performance, financial reporting, investor relations, ESG services
and services provided by third parties. Additional meetings are
arranged when needed.
The Directors’ conflicts of interest policy requires Directors to
disclose all actual and potential conflicts of interest as they arise
for consideration and approval by the Board. The Board may
impose restrictions or refuse to authorise such conflicts if deemed
appropriate. No Directors have any connections with the Manager,
shared directorships with other Directors or material interests in
any contract which is significant to the Company’s business.
BOARD COMMITTEES
The Board has delegated certain functions to committees. The
roles and responsibilities of these committees, together with
details of work undertaken during the year under review, are
outlined in their reports. The reports of the audit committee,
management engagement committee, and remuneration and
nomination committee are incorporated into and form part of the
Directors’ Report.
The Investment Manager
Gore Street Investment Management Limited, the Investment
Manager, acts as the Company’s alternative investment fund
manager (“AIFM”) and investment manager. It is authorised and
regulated by the Financial Conduct Authority. It provides the
Company with investment management and risk management
services as set out in the AIFM Agreement, which is governed
under the laws of England and Wales.
Gore Street Investment Management Limited, a 100% owned
subsidiary of Gore Street Capital Limited (the Company’s former
AIFM and investment manager) received approval from the
Financial Conduct Authority to perform regulated activities,
including permission to manage unauthorised AIFs, effective
31March 2025.
Following that approval, and as part of a corporate restructuring
within the Investment Manager’s group, on 31 March 2025,
the Company’s alternative investment fund management
agreement (“AIFM Agreement”), was novated from Gore Street
Capital to Gore Street Investment Management. Under the
terms of the novation agreement, GSC transferred all of its
rights and obligations under the AIFM Agreement to Gore Street
Investment Management. Gore Street Investment Management
has undertaken to the Company to observe, perform, discharge
and be bound by the AIFM Agreement as if it were a party to the
original AIFM Agreement in place of Gore Street Capital.
The Investment Manager’s headquarters remain in the UK
and it has a strong team of investment professionals with
Governance
Annual Report for year ended 31 March 2025
45
significant experience in sourcing, structuring, and managing
large renewable energy projects globally. The team behind the
Investment Manager was involved in the first deployment of
privately-owned large-scale battery projects in Great Britain.
For the year ended 31 March 2025, the Investment Manager
was entitled to receive an investment management fee, an AIFM
fee, and if certain conditions were met, a performance fee.
Under the terms of the AIFM Agreement, the Investment Manager
is entitled to receive from the Company a management fee payable
quarterly in arrears calculated at the rate of a quarter of one per
cent of Adjusted NAV. Adjusted NAV is NAV minus “Uncommitted
Cash”, where Uncommitted Cash means all cash on the Company
balance sheet that has not been allocated for repayment of a
liability on the balance sheet or any earmarked capital costs of the
Company or any of its subsidiaries. Inaddition, the Investment
Manger receives a fee of £75,000 per annum for acting as AIFM,
and receives £667 for each Annex IV report filed on behalf of the
Company.
The Investment Manager was entitled to a performance fee, for
the year ended 31 March 2025, of 10% of any outperformance
of the NAV over an annual hurdle of 7%, provided that the closing
NAV per share exceeds the high water mark NAV at the date the
last performance fee was paid. The performance fee was capped
at 50% of the annual management fee. No such performance fee
was awarded for the year ended 31 March 2025.
The AIFM Agreement can be terminated by either party on
12 months’ notice, as well as in certain other circumstances
such as material and continuing breaches of the agreement or
insolvency.
The AIFM Agreement also provides that in the specific event of a
takeover offer for the Company becoming wholly unconditional the
AIFM Agreement will terminate automatically with no requirement
for notice to be served and the Investment Manager will be entitled
to a performance fee equal to 20% of the amount (if any) by which
the offer price multiplied by the number of ordinary shares in issue
exceeds the prescribed benchmark for payment of a performance
fee, such fee to be capped at 3.99% of NAV (the ‘Exit Performance
Fee’) plus a fee equal to 1% of Adjusted NAV; or where no Exit
Performance Fee is payable, the Investment Manager will instead
be entitled to a fee equal to 2% of Adjusted NAV (the ‘Minimum
Takeover Fee’). Ifthe aggregate amount of any Exit Performance
Fee payable plus 1% of Adjusted NAV is less than the Minimum
Takeover Fee, then the Investment Manager shall instead receive
the Minimum Takeover Fee.
The management engagement committee reviewed the
performance of the Investment Manager for the period under
review (Gore Street Capital Limited) and agreed that the new
Investment Manager Gore Street Investment Management
Limited would continue to have the appropriate depth and quality
of resource to deliver superior returns over the longer term. The
Board received, and approved, the recommendation that the
Investment Manager’s appointment under the terms of the AIFM
Agreement is in the best interests of shareholders as a whole.
As of 1 October 2025 the fees payable under the AIFM
Agreement will be substantially revised to a fee calculated at 1%
per annum of the average (50:50) of market capitalisation and
Adjusted NAV. The revised investment management fee will be
subject to a cap of 1% of Adjusted NAV. Investment management
fees will be paid quarterly and market capitalisation will
be calculated as the average of the closing daily market
capitalisation on each business day in the quarter (Ordinary
Shares held by the Company in treasury are to be excluded).
Also with effect from 1 October 2025, the performance fee,
ExitPerformance Fee and termination fee on a takeover will no
longer apply.
For details of the fees paid to the Investment Manager, please
refer to note 21 on pages 80-81.
THE COMMERCIAL MANAGER
Gore Street Services Limited (the Commercial Manager) has been
appointed to provide various commercial services to the Company,
including asset management and construction oversight, as well as
administrative, accounting and company secretarial support.
THE DEPOSITARY
Indos Financial Limited is the Depositary to the Company. It is
authorised and regulated by the Financial Conduct Authority.
AsDepositary it is responsible for oversight of the Company and
Investment Manager, cash-flow monitoring, and record keeping
andverification of assets.
THE ADMINISTRATOR
Apex Group Fiduciary Services (UK) Limited (“Apex”) is
Administrator to the Company.
During the year ended 31 March 2025, as Administrator, Apex
on behalf of the Directors, was responsible for the maintenance
of accounting records, preparation of the annual financial
statements, cash management services comprising processing
and making payments for the Company and the calculation, in
conjunction with the Investment Manager, of the Net Asset Value
of the Company.
Corporate Governance Code disclosures
The Board has considered the Principles and Provisions of the AIC
Code of Corporate Governance (AIC Code). The AIC Code addresses
the Principles and Provisions set out in the UK Corporate Governance
Code (the UK Code), as well as setting out additional Provisions
on issues that are of specific relevance to the Company. The Board
considers that reporting against the Principles and Provisions of
the AIC Code, which has been endorsed by the Financial Reporting
Council provides more relevant information to shareholders.
The Company has complied with the Principles and Provisions of
the AIC Code. The AIC Code is available on the AIC website (www.
theaic.co.uk). It includes an explanation of how the AIC Code adapts
the Principles and Provisions set out in the UK Code to make them
relevant for investment companies.
The Financial Conduct Authority requires all UK listed companies
to disclose how they have complied with the provisions of the UK
Code. This statement, together with the Statement of Directors’
Responsibilities, viability statement and going concern statement
set out on pages 54 and 40 respectively, indicates how the
Company has complied with the principles of good governance
of the AIC Code and its requirements on internal control. The
Strategic Report and Directors’ Report provide further details on
the Company’s internal controls (including risk management),
governance and diversity policy.
The Board confirms that the Company has complied with the AIC
Code during the year under review.
Governance
46
Gore Street Energy Storage Fund plc
Revenue and Dividends
The financial statements of the Company for the period appear
from page 61. Total Comprehensive profit for the year 31 March
2025 was £6,184,203 (total comprehensive loss for the year
ended 31 March 2024: £5,658,539). The Directors have approved
a fourth interim dividend of 1.0 pence per share be paid, bringing
the total dividend in respect of the period ended 31 March 2025
to 4 pence per share (7.5 pence per share 31 March 2024).
The board expects to declare an additional 3p special dividend
following the reporting period as detailed in the Chair’s statement.
Dividend Policy
It is the Directors’ intention to continue to pay dividend income
to shareholders with distributions on a quarterly basis, subject to
market conditions and performance, financial position and outlook,
and fiscal environment. The profile and quantum of dividend
distributions will be more closely aligned with operational and other
cashflows rather than NAV.
Investors should note that the payment of dividends is at the
discretion of the Board and the Directors may resolve to pay
dividends otherwise than in accordance with the targets noted
above in order to reflect the Company’s expected returns and future
plans for the growth of the Company. The Chair’s Statement gives
details of how the Board intends to apply the policy.
Other required Directors’ Report
disclosures under laws, regulations, and the
AIC Code
STATUS
The Company was incorporated on 19 January 2018 and carries
on business as an investment trust. Its shares are listed and were
admitted to trading on the main market of the London Stock
Exchange on 25 May 2018. It has been approved by HM Revenue
& Customs as an investment trust in accordance with section 1158
of the Corporation Tax Act 2010, by way of a one-off application
and it is intended that the Company will continue to conduct its
affairs in a manner which will enable it to retain this status. The
Company is domiciled in the UK and is an investment company
within the meaning of section 833 of the Companies Act 2006.
TheCompany is not a “close” company for taxation purposes.
It is not intended that the Company should have a limited life
but the Directors consider it desirable that the shareholders
should have the opportunity to review the future of the Company
at appropriate intervals. Accordingly, the articles of association
contain provisions requiring the Directors to put a proposal for the
continuation of the Company to shareholders every five years. At
the 2023 AGM the shareholders voted in favour of the continuation
of the Company. The next continuation vote will be proposed at the
2028 AGM.
SHARE CAPITAL AND SUBSTANTIAL SHARE INTERESTS
As at 31 March 2025, 505,099,478 Ordinary Shares were in issue
(no change from the previous reported year as at 31 March 2024)
and no other classes of shares were in issue at the respective
2024 and 2025 year ends. No shares are held in treasury. The
total number of voting rights in the Company as at 16 July is
505,099,478.
Subject to company law and the Articles, the Directors are
authorised to issue shares of such number of tranches and on such
terms as they determine, provided that such terms are consistent
with the provision of the Articles.
No person holds securities in the Company carrying special rights
with regards to control of the Company.
There were no changes to the Company’s share capital during the
year under review. All shares in issue rank equally with respect to
voting, dividends and any distribution on winding up. There are no
restrictions on voting rights.
As at 31 March 2025, the Company had received notifications in
accordance with the FCA’s Disclosure Guidance and Transparency
Rule 5.1.2R of the below interests in 3% or more of the voting
rights attaching to the Company’s issued share capital.
Shareholder
Ordinary
shares
Total voting
rights (%)
Rathbone Investment
Management Limited 50,484,312 9.99
Hargreaves Lansdown
Nominees Limited 22,048,703 6.39
EFG Harris Allday 18,975,028 5.50
Interactive Investor Services
Nominee Limited 16,528,086 4.79
Charles Stanley 12,682,956 3.68
Momentum Global Investment
Management 12,389,177 3.59
AJ Bell 11,677,367 3.38
First Avenue Capital 11,658,249 3.38
Redmayne Bentley 10,972,508 3.18
Following the year end, RM Capital Markets Limited notified the
Company its holding of 25,383,600 shares represented 5.02% of
the Company’s voting rights. Stichting Juridisch Eigendom Privium
Sustainable Impact Fund also notified the Company of its holding
of 15,545,087 representing 3.08% of the Company’s voting rights.
MEETINGS AND ATTENDANCE
The Board meets formally on a quarterly basis. The table below details
the meetings held during the financial year and Directors’ attendance.
In addition, there were nine ad hoc board meetings and one ad hoc
audit committee meeting held during the year, attended by those
Directors available at the time. All Directors attended the AGM.
Director
Quarterly
Board
Audit
Committee
Remuneration
and
Nomination
Management
Engagement
Pat Cox 4/4 4/4 2/2 1/1
Caroline Banszky 4/4 4/4 2/2 1/1
Max King 4/4 3/4 2/2 1/1
Tom Murley 4/4 4/4 2/2 1/1
Lisa Scenna 4/4 4/4 2/2 1/1
DISCLOSURE OF INFORMATION TO AUDITOR
The Directors confirm that, as at the date of this report, they
have taken all the steps that they ought to have taken to make
themselves aware of any information needed by the auditor for the
purposes of the audit, and to establish that the auditor is aware of
that information. The Directors are not aware of any relevant audit
information of which the auditor is unaware.
Governance
Annual Report for year ended 31 March 2025
47
DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE
AND INDEMNITIES
Directors’ and officers’ liability insurance cover was in place for the
Directors throughout the year. The Company’s articles of association
provide, subject to the provisions of legislation, an indemnity for
Directors in respect of costs which they may incur relating to the
defence of any proceedings brought against them arising out of
their positions as Directors, in which they are acquitted or judgment
is given in their favour by the court. This is a qualifying third party
indemnity policy and was in place throughout the year under review
for each Director and to the date of this report.
By order of the Board
Gore Street Services Limited
Company Secretary
16 July 2025
Governance
48
Gore Street Energy Storage Fund plc
Audit Committee Report
Scope
The committee is responsible for monitoring the integrity of
financial reporting, quality and effectiveness of external audit,
risk management and the system of internal control. The
committee reports and makes recommendations to the Board
after each meeting. Its terms of reference are available on the
Company’s website.
All Directors are members of the committee and Caroline
Banszky is its chair. The Board has satisfied itself that at
least one of the committee’s members has recent and
relevant financial experience and that the committee as a
whole has competence relevant to the sector in which the
companyoperates.
During the year, the committee agreed that it would be meeting
at least four times per year, to consider the annual and interim
reports and the unaudited quarterly NAVs. During the year it
met four times (and held one ad hoc committee meeting). Its
effectiveness was assessed as part of the Board evaluation.
Thecommittee’s terms of reference were reviewed during
theyear.
Approach
FINANCIAL REPORTS AND VALUATION
Monitoring the integrity of the financial statements of the
Company and any formal announcements relating to the
Company’s financial performance and reviewing significant
financial reporting judgements contained in them.
Reporting to the Board on the appropriateness of the Board’s
accounting policies and practices including critical judgement
areas and going concern and the viability statements.
Reviewing the valuation of the Company’s investments prepared
by the Investment Manager and their underlying assumptions,
and review of the work of the independent valuer BDO LLP
biannually prior to making a recommendation to the Board on
the valuation of the Company’s investments.
AUDIT
Meeting regularly with the Auditor to review their proposed
audit plan and the subsequent audit report, including review
of any significant issues in relation to the financial statements,
Assessment of the effectiveness of the audit process and the
levels of fees paid in respect of both audit and non-audit work.
Making recommendations to the Board in relation to the
appointment, re-appointment, or removal of the Auditor,
and approving their remuneration and the terms of their
engagement. Monitoring and reviewing annually the Auditor’s
independence, objectivity, expertise, resources, qualification,
and non-audit work.
RISK AND INTERNAL CONTROLS
Reviewing the effectiveness of the accounting and internal control
systems of the Company and considering annually whether there
is a need for the Company to have its own internal audit function.
Undertaking a robust assessment of the Company’s principal
and emerging risks and uncertainties, and reviewing how they
are being managed and mitigated, as well as reviewing the
material controls and procedures in place to identify, assess and
monitor risk.
The committee’s work during the year
FINANCIAL REPORTS AND VALUATION
Calculation of the investment management fee and
performance fee
Consideration of methodology used to calculate the fees,
matched against the criteria set out in the AIFM agreement.
Overall accuracy of the annual report and accounts
Consideration of the draft annual report and accounts and
the letters from the Investment Manager and Administrator in
support of the letter of representation to the auditor.
Assessment of the Carrying Value of Investments and
quarterly NAVs
The Company’s accounting policy is to designate investments at
fair value. As a consequence, the Committee reviewed valuation
policies processes and application. The most influential area of
judgement in the financial statements relates to the valuation of these
investments. The key estimates and assumptions include the useful
life of the assets, revenue estimates, the discount factors utilised,
the rate of inflation, and the price at which the power and associated
benefits can be sold. In particular, the committee challenged the
appropriateness of the discount rate used and carefully considered
the impact of the macro-economic and industry related factors on
income recognition and associated assumptions in relation to the
valuation of the assets that have been included in the 31 March
2025 valuation. The Company engages BDO as independent
valuation advisors to help the committee form a view as to the
reasonableness of the valuations.
The uncertainty involved in determining the fair value of investment
valuations represents a significant risk in the Company’s financial
statements. An inherent risk of management override is present
as the Investment Manager’s fee is calculated based on NAV (as
disclosed in the financial statements). The Investment Manager
is responsible for calculating the NAV with the assistance of the
Administrator, prior to approval by the Board.
On a quarterly basis, the Investment Manager provides a detailed
analysis of the NAV. This analysis highlights any movements and
assumption alterations to the NAV of the previous quarter. NAV
movements and the principles behind changes in assumptions
are considered and challenged by committee and subsequently
approved by the Board.
Governance
Annual Report for year ended 31 March 2025
49
The committee is satisfied that the key estimates and
assumptions used within the valuation model are appropriate
and that the investments have been fairly valued.
Fair, balanced and understandable
Reviewed the annual report and accounts to ensure that it was
fair, balanced and understandable.
Going concern and viability
Reviewing the impact of risks on going concern and longer-term
viability.
Recommendations to the Board
As a result of the work performed, the committee has concluded
that the annual report for the year ended 31 March 2025,
taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess
the Company’s position, performance, business model and
strategy, and has reported on these findings to the Board. The
Board’s conclusions in this respect are set out in the Statement
of Directors’ Responsibilities on page 54.
AUDIT
Effectiveness of the independent audit process and auditor
performance
Evaluated the effectiveness of the independent audit firm and
process prior to making a recommendation that it should be
re-appointed at the forthcoming AGM. Evaluated the auditor’s
performance against agreed criteria including: qualification;
knowledge, expertise and resources; independence policies;
effectiveness of audit planning; adherence to auditing standards;
and overall competence was considered, alongside feedback
from the Investment Manager and Administrator on the audit
process. The committee noted the auditor had demonstrated
its professional scepticism during the audit. The committee was
satisfied with the auditor’s replies.
Auditor independence
Ernst & Young LLP has provided audit services to the Company
since it was appointed on 19 September 2019. The auditors are
required to rotate the senior statutory auditor every five years.
Ahmer Huda was re-appointed the senior statutory auditor and
conducted the audit of the Company’s financial statements.
There were no contractual obligations that restricted the choice
of external auditors.
Audit results
Met with and reviewed a comprehensive report from the
auditor which detailed the results of the audit, compliance with
regulatory requirements, safeguards that have been established,
and on their own internal quality control procedures.
Meetings with the auditor
Met the auditor without representatives of the Investment
Manager or Administrator present. Representatives of the
auditor attended the committee meeting at which the draft
annual report and accounts were considered.
Provision of non-audit services by the auditor
The committee has reviewed the FRC’s Guidance on Audit
Committees and has formulated a policy on the provision of
non-audit services by the Company’s auditor. The committee
has determined that the Company’s appointed auditor will not
be considered for the provision of certain non-audit services,
such as accounting and preparation of the financial statements,
internal audit and custody. The auditor may, if required, provide
other non-audit services which will be judged on a case-by-case
basis. During the year, the only non- audit service provided by EY
was their review of the half year accounts/financial statements.
The committee was satisfied that the provision of these non-audit
services did not threaten the auditors’independence.
Consent to continue as auditor
Ernst & Young LLP indicated to the committee their willingness
to continue to act as auditor.
Recommendations to the Board
Having reviewed the performance of the auditor as described
above, the committee considered it appropriate to recommend
the firm’s re-appointment. Resolutions to re-appoint Ernst & Young
LLP as auditor to the Company, and to authorise the Directors to
determine their remuneration will be proposed at the AGM.
RISK AND INTERNAL CONTROLS
Service provider controls
Reviewing the operational controls maintained by the Investment
Manager, Administrator, Depositary and Registrar.
Internal controls and risk management
Consideration of several key aspects of internal control and
risk management operating within the Manager, depositary and
registrar, including assurance reports.
Review of service provider attestations with respect to financial
crime, ESG and associated reporting.
Compliance with the investment trust qualifying rules in
S1158 of the Corporation Tax Act 2010
Consideration of the Administrator’s report confirming
compliance.
Principal risks
Reviewing the principal risks faced by the Company and the
risk matrix describing how they are managed or mitigated, as
described in the Strategic Report.
Emerging risks
Reviewing the emerging risks for the Company.
Material Controls
Reviewing the material controls for the Company.
Recommendations to the Board
The Company is an investment trust with outsourced service
providers who report annually on their internal controls. The
committee therefore agreed an internal audit function was not
required. The committee’s assessment of internal controls and
risks and recommendation to the Board is set out on page 37 in
the Strategic Report.
Caroline Banszky
Chair of the Audit Committee
16 July 2025
Governance
50
Gore Street Energy Storage Fund plc
Management Engagement
Committee Report
Scope
The management engagement committee is responsible for
(1) the monitoring and oversight of the Investment Manager’s
performance and fees, and confirming the Investment
Manager’s ongoing suitability, and (2) reviewing and assessing
the Company’s other service providers, including reviewing
their fees. All Directors are members of the committee and
Pat Cox is its chair. Its terms of reference are available on the
Company’swebsite.
Approach
OVERSIGHT OF THE INVESTMENT MANAGER
The committee
• reviews the Investment Manager’s performance, over the
short and long term, against the peer group and the market.
• considers the reporting it has received from the Investment
Manager throughout the year, and the reporting from the
Investment Manager to the shareholders.
• assesses management fees on an absolute and relative
basis, receiving input from the Company’s brokers, including
peer group and industry figures, as well as the structure of
the fees.
• reviews the appropriateness of the Investment Manager’s
contract, including terms such as notice period.
• assesses whether the Company receives appropriate
administrative, accounting, company secretarial and
marketing support from the Investment Manager.
OVERSIGHT OF OTHER SERVICE PROVIDERS
The committee reviews the performance and competitiveness
of the Company’s service providers on at least an annual basis,
including the Commercial Manager, Route to market provider,
External valuer, Tax advisor, Depositary, Brokers, Registrar,
Company Secretary and Administrator.
The committee also receives a report from the Company
Secretary on ancillary service providers and considers any
recommendations.
The committee notes the audit committee’s review of the auditor.
The committee’s work during the year
Its terms of reference were reviewed and updated.
The committee undertook a detailed review of the Investment
Manager’s performance and agreed that it has the appropriate
depth and quality of resource to deliver superior returns over the
longer term.
The committee reviewed the management fees, taking into
account announcements from peer group funds and shareholder
feedback, and agreed the current management fees structure
should be reviewed. Following the year end, a substantial
revision of fees was approved, as detailed in the Chair’s
Statement and on page 45.
The committee reviewed the other services provided by the
Manager and agreed they were satisfactory.
The annual review of each of the service providers was
satisfactory.
The committee noted that the audit committee had undertaken a
detailed evaluation of the Manager’s, registrar’s and depositary’s
internal controls.
Based on its assessment, the committee recommended, and the
Board agreed that the ongoing appointment of the Investment
Manager on the terms of the AIFM agreement, as novated to
Gore Street Investment Management Limited on 31 March 2025
and amended following the year end, with effect from 1 October
2025, was in the best interests of shareholders as a whole.
The recommendations that the Company’s service providers’
performance remained satisfactory and that the revised fees
paid to the Investment Manager and other service providers
remained appropriate and in line with the market were both also
approved by the Board.
Pat Cox
Chair of the Management Engagement Committee
16 July 2025
Governance
Annual Report for year ended 31 March 2025
51
Scope
The committee is responsible for the recruitment, selection and
induction of Directors, their assessment during their tenure,
and the Board’s succession. It is also responsible for reviewing
Directors’ fees. Based on its review it makes recommendations
to the Board. All Directors are members of the committee and
Tom Murley is its chair. Its terms of reference are available on the
Company’s website.
Approach
RECRUITMENT
The committee prepares a job specification for each role, and
an independent recruitment firm is appointed. For the Chair
and the chairs of committees, the committee considers current
Board members too.
A job specification outlines the knowledge, professional skills,
personal qualities and experience requirements.
Potential candidates are assessed against the Company’s
diversity policy.
The committee discusses the long list, invites a short list of
candidates for interviews and makes a recommendation to
theBoard.
The committee reviews the induction of new Directors.
EVALUATION
The committee assesses each Director annually, and may use an
external Board evaluator every three years.
The evaluation focuses on whether each Director continues to
demonstrate commitment to their role and provides a valuable
contribution to the Board during the year, taking into account
time commitment, independence, conflicts and training needs.
Following the evaluation, the committee provides a
recommendation to shareholders with respect to the annual
re-election of Directors at the AGM.
All Directors retire at the AGM and their re-election is subject to
shareholder approval.
SUCCESSION
The Board’s succession policy is that Directors’ tenure will be for
no longer than nine years, except in exceptional circumstances
and that each Director will be subject to annual re-election at
theAGM.
The committee reviews the Board’s current and future needs at
least annually. Should any need be identified the committee will
initiate the selection process.
The committee oversees the handover process for retiring
Directors.
REMUNERATION
The committee reviews Directors’ fees, taking into account
comparative data. No Directors are involved in making
recommendations with respect to their own remuneration.
Any proposed changes to the remuneration policy for Directors
are discussed and reported to shareholders.
The committee’s work during the year
RECRUITMENT
The external recruitment firm Nurole was appointed during the
year to search for two Directors with two distinct profiles and an
emphasis on diversity. Nurole provided a list of candidates for
the potential succession of two Directors (not including the SID
and Chair) appointed at IPO. The committee evaluated the list,
taking into consideration the skills, knowledge and experience of
the current Directors that would be required from a succession
candidate. The committee reviewed the list and condensed it
into a shortlist of candidates who were interviewed by the board
in November 2024.
At a meeting in December the committee reported there
were several promising candidates, with the requisite skills,
knowledge and experience.
However, as the Directors turned their focus to working on their
review of the Company’s strategy and the other matters reported
in the Chair’s Statement, the committee discussed and then
agreed in March 2025, to place the recruitment process on hold
until the independent review was further progressed to make
sure that the profile and skill set of new Directors would be in
line with and strategy changes.
Following the progress reported in this annual report, the
committee will soon relaunch the recruitment process and will
aim for the Company to announce the appointment of one or
two new directors before the end of 2025. The committee is
mindful that the Company is not currently complying with all
of the Listing Rule board diversity targets, and the committee
is seeking to enhance board diversity when recruiting the next
directors.
EVALUATION
The board, committees, directors and chair evaluation commenced
in February 2025. The evaluation was led by the Chair, audit
committee chair and Company Secretary. The internal evaluation
process followed the same format as the previous year, including
a questionnaire document and follow-up one on one meeting with
the Chair and audit committee Chair, both completed in March.
Following the reporting period, on 9 July 2025, the Chair and
Senior Independent Director reported to the board on the outcome
of the evaluation.
The committee also reviewed each Director’s time commitment
and independence by reviewing a complete list of appointments,
Remuneration and Nomination
Committee Report
Governance
52
Gore Street Energy Storage Fund plc
including pro bono not for profit roles, to ensure that each Director
remained free from conflict and had sufficient time available
to discharge each of their duties effectively. All Directors were
considered to be independent in character and judgement. The
committee considered each Director’s contributions, and noted
that in addition to extensive experience as professionals and
non-executive Directors, each Director had valuable skills and
experience, as detailed in their biographies on pages 42 and 43.
Based on its assessment, the committee recommended, and
the Board approved, the recommendations for each Director’s
re-election.
SUCCESSION
The committee agreed that the succession policy remained
appropriate.
Noting that the four Directors appointed at IPO would need to
retire by the same date, the committee agreed that it would be
appropriate to stagger their retirements dates.
Having agreed on the planned recruitment process for 2025
and beyond, the committee agreed that depending on the
execution of the recruitment process, one or two Directors
would retire at the AGM in 2026, after which the committee
would review the succession plan. The committee agreed that in
the circumstances it was appropriate that the Chair stay on the
Board for up to ten years.
REMUNERATION
The committee reviewed Directors’ fees, using external
benchmarking, and recommended no increase in Directors’ fees,
as detailed in the remuneration report.
Tom Murley
Chair of the Remuneration and Nomination Committee
16 July 2025
Directors’
Remuneration Report
Introduction
The following remuneration policy is currently in force and
is subject to a binding vote every three years. The policy
was last approved by the shareholders at the AGM on
20September 2022, the next vote is due to take place at the
upcoming 2025 AGM. An ordinary resolution to approve the
Directors’ remuneration policy will be put to shareholders at
the forthcoming AGM (no changes are proposed). The below
Directors’ annual report on remuneration is subject to an annual
advisory vote. An ordinary resolution to approve this report will
be put to shareholders at the forthcoming AGM.
At the AGM held on 20 September 2022, 99.86% of the votes
cast (including votes cast at the Chairman’s discretion) in respect
of approval of the remuneration policy were in favour, while
0.14% were against and 255,185 votes were withheld.
At the AGM held on 18 September 2024, 90.05% of the votes
cast (including votes cast at the Chairman’s discretion) in
respect of approval of the report on remuneration for the year
ended 31 March 2024 were in favour, while 9.95% were against
and 426,823 votes were withheld.
Directors’ remuneration policy
The Company’s policy is to determine the level of Directors’ fees
with due regard to the experience of the Board as a whole, the
time commitment required, and to be fair and comparable to
non-executive Directors of similar companies. The Company may
also periodically choose to benchmark Directors’ fees with an
independent review to ensure they remain fair and reasonable.
Directors’ fees will be adjusted from time to time and will be subject
to shareholder approval in the subsequent AGM. The Directors
may elect to apply the cash amount equal to their annual fee to
subscribe for, or to purchase, Ordinary Shares. The Directors are
entitled only to their annual fee and their reasonable expenses. No
element of the Directors’ remuneration is performance related, nor
does any Director have any entitlement to pensions, share options
or any long-term incentive plans from the Company.
The Directors hold their office in accordance with the Articles of
Association and their appointment letters. No Director has a service
contract with the Company, nor are any such contracts proposed.
The Directors’ appointments can be terminated in accordance
with the Articles of Association and without compensation. Under
the Company’s Articles of Association, all Directors are entitled
to remuneration determined from time to time by the Board and
approved by shareholders.
Application of the Directors’ remuneration
policy
The Board did not seek the views of shareholders in setting this
remuneration policy. Any comments on the policy received from
shareholders would be considered on a case-by-case basis.
As the Company does not have any employees, no employee
pay and employment conditions were taken into account
when setting this remuneration policy and no employees were
consulted in its construction. The Directors did not receive any
shareholder feedback on the policy.
Directors’ fees are reviewed annually and take into account
research from third parties on the fee levels of Directors of
peer group companies, as well as industry norms and factors
affecting the time commitment expected of the Directors.
New Directors are subject to the provisions set out in this
remuneration policy.
Directors’ annual report on remuneration
This report explains how the Directors’ remuneration policy was
implemented during the year ended 31 March 2025.
Directors’ remuneration was last reviewed by the remuneration
and nomination committee and the Board in March 2025.
The members of the committee at the time that remuneration levels
were considered were all the Directors. Although no external advice
was sought in considering the levels of Directors’ fees, information
on fees paid to Directors of peer group companies provided by the
Governance
Annual Report for year ended 31 March 2025
53
Secretary and Corporate Broker was taken into consideration, as
was independent third-party research.
Following this review, the committee recommended, and the
Board agreed, that Directors’ fees would not be increased.
Asa result, all non-executive Directors will continue to be paid
£49,000 per annum. The Chair receives an additional £30,000
and the audit chair an additional £10,000. Fees were last
increased with effect from 1 April 2024.
Fees paid to Directors
The following amounts were paid by the Company to Directors
for their services in respect of the year ended 31 March 2025
and the preceding financial year. Directors’ remuneration
is all fixed; they do not receive any variable remuneration.
The performance of the Company over the financial year is
presented on page 1, under the heading “Key Metrics”.
Directors’ Fees Change in annual fee over years ended 31 March
Director
2025
£
2024
£
2025
%
2024
%
2023
%
2022
%
Patrick Cox (Chair)
79,000 77,000 2.60 9.08 22.83 32.53
Caroline Banszky
59,000 57,000 3.51 8.57 16.67 44.92
Malcolm King
49,000 47,000 4.26 7.43 9.38 49.62
Thomas Murley
49,000 47,000 4.26 7.43 9.83 49.62
Lisa Scenna
1
49,000 43,083 13.73 – – –
Total
285,000 271,083 – – – –
1
Appointed as a Director on 1 May 2023
The information in the table above has been audited.
EXPENDITURE BY THE COMPANY ON REMUNERATION AND DISTRIBUTIONS TO SHAREHOLDERS
The difference in actual spend between 31 March 2025 and 31 March 2024 on Directors’ remuneration in comparison to
distributions (dividends and share buybacks) and other significant spending are set out in the table below:
Payments made
during the year
ended 31 March
2025
Payments made
during the year
ended 31 March
2024
Directors’ total remuneration
£285,000 £271,083
Dividends paid
£27,586,473 £36,384,962
Buy back of Ordinary Shares
– –
SHARE PRICE AND REFERENCE INDEX
PERFORMANCE SINCE IPO
0
20
40
60
80
100
120
140
160
Mar-25Mar-24Mar-23Mar-22Mar-21Mar-20Mar-19Jun-18IPO
Reference Index Total ReturnShare Price Total Return
Reference Index is FTSE All-Share. Source: London Stock Exchange.
Rebased to 100 as at 29 June 2018.
Definitions of terms and Alternative Performance Measures are
provided on page 97.
DIRECTORS’ SHARE INTERESTS
The Company’s articles of association do not require Directors to
own shares in the Company. The interests of Directors, including
those of connected persons, at the beginning and end of the
financial year under review are set out below.
Ordinary Shares of 1p each held
Director 31 March 2025 31 March 2024
Patrick Cox (Chair) 246,496 246,496
Caroline Banszky 60,000 60,000
Malcolm King
1
50,000 50,000
Thomas Murley 75,000 75,000
Lisa Scenna 35,000 35,000
1
Following the reporting period, on 14 April 2025, Malcolm King
purchased 30,000 Ordinary Shares. Malcolm King now has a beneficial
interest in 80,000 Ordinary Shares.
The information in the table above has been audited.
By order of the Board
Gore Street Services Limited
Company Secretary
16 July 2025
Governance
54
Gore Street Energy Storage Fund plc
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial
statements for each financial period. Under that law the
Directors are required to prepare the Company financial
statements, in accordance with UK adopted international
accounting standards.
Under company law, the Directors must not approve the
financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Company and of
the profit or loss for the Company for that period.
In preparing these financial statements, the Directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether they have been prepared in accordance with
UK adopted international accounting standards, subject
to any material departures disclosed and explained in the
financial statements;
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business; and
• prepare a Report of the Directors, a Strategic Report and
Directors’ Remuneration Report which comply with the
requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any
time the financial position of the Company and enable them to
ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets
of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for ensuring the Annual Report
and the financial statements are made available on a website.
Financial statements are published on the Company’s website in
accordance with legislation in the UK governing the preparation
and dissemination of financial statements, which may vary from
legislation in other jurisdictions. The maintenance and integrity
of the Company’s website www.gsenergystoragefund.com is the
responsibility of the Directors. The Directors’ responsibilities
also extend to the ongoing integrity of the financial statements
contained therein.
The Directors confirm that to the best of their knowledge:
• the Annual Report, taken as a whole, is fair, balanced, and
understandable and provides the information necessary
for shareholders to assess the Company’s performance,
business model and strategy;
• the Company’s financial statements have been prepared
in accordance with UK adopted international accounting
standards and give a true and fair view of the assets, liabilities,
financial position and net return of the Company; and
• the Annual Report includes a fair review of the development
and performance of the business and the financial position
of the Company, together with a description of the principal
and emerging risks and uncertainties that it faces.
On behalf of the Board
Pat Cox
Chair
16 July 2025
Statement of Directors’ Responsibilities
in respect of the preparation of the
Annual Financial Report
Financial Statements
Copy to Come
Annual Report for year ended 31 March 2025
55
Financial StatementsFinancial Statements
56
Gore Street Energy Storage Fund plc
Independent Auditor’s Report
Independent Auditor’s report to the
members of Gore Street Energy Storage
Fund Plc
Opinion
We have audited the financial statements of Gore Street Energy
Storage Fund Plc (the “Company”) for the year ended 31 March
2025 which comprise Statement of Comprehensive Income,
the Statement of Financial Position, the Statement of Changes
in Equity, the Statement of Cash Flows and the related notes
1 to 23, including material accounting policy information. The
financial reporting framework that has been applied in their
preparation is applicable law and UK-adopted International
Accounting Standards.
In our opinion, the financial statements:
• give a true and fair view of the Company’s affairs as at
31March 2025 and of its profit for the year then ended;
• have been properly prepared in accordance with UK-
adopted International Accounting Standards; and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Ourresponsibilities under those standards are further described
in the Auditor’s responsibilities for the audit of the financial
statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the Company in accordance with
the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard
were not provided to the Company and we remain independent
of the Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the Directors’ use of the going concern basis of accounting in
the preparation of the financial statements is appropriate. Our
evaluation of the Directors’ assessment of the Company’s ability to
continue to adopt the going concern basis of accounting included
the following procedures:
• We confirmed our understanding of the Company’s going
concern assessment process and engaged with the
Company Secretary to determine if all key factors were
considered in their assessment.
• We inspected the Directors’ assessment of going concern,
including the cash flow forecast, for the period to
30 September 2026 which is at least 12 months from the
date the financial statements were authorised for issue.
In preparing the cash flow forecast, the Company has
concluded that it is able to continue to meet its ongoing
costs as they fall due.
• We reviewed the factors and assumptions, including
the impact of current economic environment and other
significant events that could give rise to market volatility,
as applied to the cash flow forecast. We considered the
appropriateness of the methods used to calculate the
cash flow forecast and determined, through testing of the
methodology and calculations, that the methods, inputs and
assumptions utilised were appropriate to be able to make
an assessment for the Company. We also reviewed the
Company’s assessment of the investment portfolio under
stressed market conditions and determined the impact of
sensitivities on the going concern assessment.
• To test for unrecorded liabilities and material commitments,
we reviewed bank statements as well as relevant contracts
and agreements.
• We reviewed the Company’s going concern disclosures
included in the annual report in order to assess whether
the disclosures were appropriate and in conformity with the
applicable reporting standards.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Company’s ability to continue as a going concern for a period
assessed by the Directors, being the period to 30 September
2026, which is at least 12 months from when the financial
statements are authorised for issue.
Independent Auditor’s Report
57
Annual Report for year ended 31 March 2025
In relation to the Company’s reporting on how they have applied
the UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the Directors’ statement in
the financial statements about whether the Directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors
with respect to going concern are described in the relevant
sections of this report. However, because not all future events
or conditions can be predicted, this statement is not a guarantee
as to the Company’s ability to continue as a going concern.
Overview of our audit approach
Key audit matters
• Risk of inaccurate valuation of investments
Materiality
• Overall materiality of £5.19m (2024: £5.41m) which represents 1% (2024: 1%) of shareholders equity.
An overview of the scope of our audit
TAILORING THE SCOPE
Our assessment of audit risk, our evaluation of materiality and
our allocation of performance materiality determine our audit
scope for the Company. This enables us to form an opinion on
the financial statements. We take into account size, risk profile,
the organisation of the Company and effectiveness of controls,
the potential impact of climate change and changes in the
business environment when assessing the level of work to be
performed. All audit work was performed directly by the audit
engagement team which includes our valuation specialists.
CLIMATE CHANGE
Stakeholders are increasingly interested in how climate change
will impact companies. The Company has determined that
the most significant future impacts from climate change on its
operations will be from how climate change could affect the
Company’s investments and overall investment process. This is
explained in the principal risks and uncertainties on page39.
Thisdisclosure form part of the “Other information,” rather
than the audited financial statements. Our procedures on these
unaudited disclosures therefore consisted solely of considering
whether they are materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit
or otherwise appear to be materially misstated, in line with our
responsibilities on “Other information”.
Our audit effort in considering the impact of climate change on
the financial statements was focused on the adequacy of the
Company’s disclosures in the financial statements as set out
in note 2 and conclusion that climate risk does not materially
impact the estimates and assumptions used in determining the
fair value of the investments. We also challenged the Directors’
considerations of climate change in their assessment of viability
and associated disclosures.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due
to fraud) that we identified. These matters included those
which had the greatest effect on: the overall audit strategy, the
allocation of resources in the audit; and directing the efforts of
the engagement team. These matters were addressed in the
context of our audit of the financial statements as a whole, and in
our opinion thereon, and we do not provide a separate opinion
on these matters.
Independent Auditor’s Report
58
Gore Street Energy Storage Fund plc
Risk Our response to the risk
Key observations
communicated
to the Audit
Committee
Inaccurate valuation of investments
Refer to the Audit Committee Report (page 48); Accounting
policies (Note 5 on page 68); and Note 11 and 16 of the
Financial Statements (pages 72 and 75).
The valuation of the investment portfolio as at 31 March 2025
was £510.25 million (2024: £481.66 million) consisting of the
Company’s investments in battery storage assets through its
wholly owned subsidiary, GSES1 Limited and its subsidiaries.
The Company meets the definition of an ‘investment entity’ in
accordance with IFRS 10, thus it values its investment in its
subsidiary at fair value through profit or loss.
The accurate valuation of investments is fundamental to the
Company’s financial performance. The return generated by the
investment portfolio is a key driver of the Company’s returns.
Due to the nature of the investment portfolio, being unlisted
investments with no directly comparable listed investments,
the underlying assumptions that drive the value of the asset
are subjective. As a result, the valuation of the portfolio is
susceptible to misstatement through management override.
The investment valuation approach requires sufficient rigour to
eliminate the susceptibility of the investment valuations to bias.
The valuation principles used are based on International
Valuation Standards Council (“IVSC”) valuation guidelines,
using a discounted cash flow (“DCF”) methodology.
We performed the following procedures:
Obtained an understanding of the Investment Manager and
Directors’ processes and controls surrounding investment
valuations, by performing walkthrough procedures to
evaluate the design and implementation of controls.
Obtained and reviewed the valuation models of each asset
held via the Company’s investment in GSES1 Limited and
its subsidiaries, to validate that the valuation methodology
adopted is consistent with the requirements of UK-adopted
international accounting standards and IVSC guidelines.
Corroborated key revenue streams and other valuation
model inputs to supporting contracts and external pricing
forecasts, as applicable.
For a selected sample of investments, engaged EY valuation
specialists to assist in challenging the appropriateness of
the discount rate used and to assess the impact of macro-
economic and industry related factors used in calculating the
net present value of the future cash flows. For the remainder
of the investments, we ensured that consistent valuation
methodology was applied and challenged the key estimates
used in determining the fair value of the investments.
Performed back testing by comparing prior year revenue
and expense projections to current year actuals, to assess
reasonableness of projections.
Held discussions with the Investment Manager to
understand the key drivers to the cash flow projections
included in the valuation models and assessed their
appropriateness based on the nature of the asset and our
understanding of the relevant markets.
Checked the clerical accuracy of the valuation models.
Our audit procedures
did not identify
any material
misstatements
regarding the risk of
incorrect valuation of
investments.
There have been no changes to the areas of audit focus raised in
the above risk table from the prior year.
Our application of materiality
We apply the concept of materiality in planning and performing
the audit, in evaluating the effect of identified misstatements on
the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually
or in the aggregate, could reasonably be expected to influence
the economic decisions of the users of the financial statements.
Materiality provides a basis for determining the nature and
extent of our audit procedures.
We determined materiality for the Company to be 5.19 million
(2024: £5.41 million), which is 1% (2024: 1%) of shareholders
equity. We believe that shareholders equity is the most
important financial metric on which shareholders would judge
the performance of the Company.
Performance materiality
The application of materiality at the individual account or balance
level. It is set at an amount to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment
of the Company’s overall control environment, our judgement
was that performance materiality was 75% (2024: 75%) of
our planning materiality, namely £3.89m (2024: £4.06m). We
have set performance materiality at this percentage due to our
past experience of the audit that indicates that a lower risk of
misstatements, both corrected and uncorrected.
Reporting threshold
An amount below which identified misstatements are considered
as being clearly trivial.
We agreed with the Audit Committee that we would report to
them all uncorrected audit differences in excess of £0.26m
(2024: £0.27m), which is set at 5% of planning materiality,
as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds.
Independent Auditor’s Report
Annual Report for year ended 31 March 2025
59
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in light
of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in
the annual report, other than the financial statements and our
auditor’s report thereon. The Directors are responsible for the
other information contained within the annual report.
Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the course of the audit or otherwise appears to be
materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement
in the financial statements themselves. If, based on the work
we have performed, we conclude that there is a material
misstatement of the other information, we are required to report
that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by
the Companies Act 2006
In our opinion the part of the Directors’ Remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
• the information given in the Strategic Report and the
Directors’ Report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
• the Strategic Report and Directors’ Report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report
by exception
In the light of the knowledge and understanding of the Company
and its environment obtained in the course of the audit, we have
not identified material misstatements in the strategic report or
Directors’ report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report
to you if, in our opinion:
• adequate accounting records have not been kept, or
returns adequate for our audit have not been received from
branches not visited by us; or
• the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by
law are not made; or
• we have not received all the information and explanations we
require for our audit
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Company’s compliance
with the provisions of the UK Corporate Governance Code
specified for our review by the UK Listing Rules
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 40;
• Directors’ explanation as to its assessment of the Company’s
prospects, the period this assessment covers and why the
period is appropriate set out on page 40;
• Director’s statement on whether it has a reasonable
expectation that the group will be able to continue in
operation and meets its liabilities set out on page 40;
• Directors’ statement on fair, balanced and understandable
set out on page 54;
• Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
page 37;
• The section of the annual report that describes the review
of effectiveness of risk management and internal control
systems set out on page 39; and;
• The section describing the work of the audit committee set
out on page 48.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities
statement set out on page 54, the Directors are responsible
for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such internal
control as the Directors determine is necessary to enable the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are
responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
the Directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Independent Auditor’s Report
60
Gore Street Energy Storage Fund plc
Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of these financial statements.
Explanation as to what extent the audit
was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including
fraud. The risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention
and detection of fraud rests with both those charged with
governance of the Company and management.
• We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Company and
determined that the most significant are those that relate
to the reporting framework (UK-adopted international
accounting standards, the Companies Act 2006, UK
Corporate Governance Code, AIC Code of Corporate
Governance and The Companies (Miscellaneous Reporting)
Regulations 2018) and Section 1158 of the Corporation Tax
Act 2010.
• We understood how the Company is complying with those
frameworks by making enquiries of the Investment Manager,
Company Secretary, and also the Directors including
the Chair of the Audit Committee. We corroborated our
understanding through our review of board minutes, papers
provided to the Audit Committee and correspondence
received from regulatory bodies.
• We assessed the susceptibility of the Company’s financial
statements to material misstatement, including how fraud
might occur by considering the key risks impacting the
financial statement. We identified fraud risks in relation
to estimation uncertainty relating to the valuation of
investments. Our audit procedures stated above in the
‘Key audit matters section’ of this Auditor’s report were
performed to address the fraud risk.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws
and regulations. Our procedures involved a review of
the Company Secretary’s reporting to the Directors with
respect to the application of the documented policies and
procedures, and review of the financial statements to ensure
compliance with the reporting requirements of the Company.
A further description of our responsibilities for the audit of the
financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the audit committee, we
were appointed by the Company on 19 September 2018 to
audit the financial statements for the year ending 31March
2019 and subsequent financial periods.
• The period of total uninterrupted engagement including
previous renewals and reappointments is seven years,
covering the years ending 31 March 2019 to 31 March 2025.
• The audit opinion is consistent with the additional report to
the audit committee.
Use of our report
This report is made solely to the Company’s members, as a
body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we
might state to the Company’s members those matters we
are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
Ahmer Huda
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
16 July 2025
Independent Auditor’s Report
Financial Statements
Annual Report for year ended 31 March 2025
61
Year Ended 31 March 2025 Year Ended 31 March 2024
Notes
Revenue
(£)
Capital
(£)
Total
(£)
Revenue
(£)
Capital
(£)
Total
(£)
Net (loss)/gain on investments at fair value
through profit and loss – (3,177,919) (3,177,919) – (30,041,779) (30,041,779)
Investment income 7 16,539,881 – 16,539,881 32,298,791 – 32,298,791
Other income 787 – 787 10,355 – 10,355
Total income 16,540,668 (3,177,919) 13,362,749 32,309,146 (30,041,779) 2,267,367
Administrative and other expenses 8 (7,178,546) – (7,178,546) (7,925,906) – (7,925,906)
Profit/(loss) before tax 9,362,122 (3,177,919) 6,184,203 24,383,240 (30,041,779) (5,658,539)
Taxation 9 – – – – – –
Profit/(loss) after tax and profit/(loss)
for the year 9,362,122 (3,177,919) 6,184,203 24,383,240 (30,041,779) (5,658,539)
Total comprehensive income/(loss) for
the year 9,362,122 (3,177,919) 6,184,203 24,383,240 (30,041,779) (5,658,539)
Profit/(loss) per share (basic and diluted) –
pence per share 10 1.85 (0.63) 1.22 5.02 (6.19) (1.10)
All Revenue and Capital items in the above statement are derived from continuing operations.
The Total column of this statement represents the Company’s Income Statement prepared in accordance with UK adopted IAS. The
profit/(loss) after tax and profit/(loss) for the year is the total comprehensive income and therefore no additional statement of other
comprehensive income is presented.
The supplementary revenue and capital columns are presented for information purposes in accordance with the Statement of
Recommended Practice issue by the Association of Investment Companies.
The notes on pages 66 to 81 form an integral part of these financial statements.
Statement of Comprehensive Income
For the Year Ended 31 March 2025
Financial Statements
62
Gore Street Energy Storage Fund plc
Statement of Financial Position
As at 31 March 2025 Company Number 11160422
Notes
31 March 2025
(£)
31 March 2024
(£)
Non – Current Assets
Investments at fair value through profit or loss 11 510,251,383 481,659,515
510,251,383 481,659,515
Current assets
Cash and cash equivalents 12 9,595,425 60,667,572
Trade and other receivables 13 114,354 519,853
9,709,779 61,187,425
Total assets 519,961,162 542,846,940
Current liabilities
Trade and other payables 14 666,939 2,150,447
666,939 2,150,447
Total net assets 519,294,223 540,696,493
Shareholders equity
Share capital 19 5,050,995 5,050,995
Share premium 19 331,302,899 331,302,899
Merger reserve 19 10,621,884 10,621,884
Capital reduction reserve 19 47,503,421 75,089,894
Capital reserve 19 92,364,716 95,542,635
Revenue reserve 19 32,450,308 23,088,186
Total shareholders equity 519,294,223 540,696,493
Net asset value per share 18 1.03 1.07
The annual financial statements were approved and authorised for issue by the Board of directors and are signed on its behalf by:
Patrick Cox
Chair
Date: 16 July 2025
The notes on pages 66 to 81 form an integral part of these financial statements.
Financial Statements
Annual Report for year ended 31 March 2025
63
Statement of Changes in Equity
For the Year Ended 31 March 2025
Share
capital
(£)
Share
premium
reserve
(£)
Merger
reserve
(£)
Capital
reduction
reserve
(£)
Capital
reserve
(£)
Revenue
reserve
(£)
Total
shareholders’
equity
(£)
As at 1 April 2024 5,050,995 331,302,899 10,621,884 75,089,894 95,542,635 23,088,186 540,696,493
Profit/(loss) for the year – – – – (3,177,919) 9,362,122 6,184,203
Total comprehensive profit/loss
for theyear – – – – (3,177,919) 9,362,122 6,184,203
Transactions with owners
Dividends paid – –
– (27,586,473) – – (27,586,473)
As at 31 March 2025 5,050,995 331,302,899 10,621,884 47,503,421 92,364,716 32,450,308 519,294,223
Capital reduction reserve and revenue reserves are available to the Company for distributions to Shareholders as determined by the Directors.
The notes on pages 66 to 81 form an integral part of these financial statements.
Financial Statements
64
Gore Street Energy Storage Fund plc
Statement of Changes in Equity
For the Year Ended 31 March 2024
Share
capital
(£)
Share
premium
reserve
(£)
Special
reserve
(£)
Merger
reserve
(£)
Capital
reduction
reserve
(£)
Capital
reserve
(£)
Revenue
reserve
(£)
Total
shareholders’
equity
(£)
As at 1 April 2023 4,813,995 315,686,634 349,856 – 111,125,000 125,584,414 (1,295,054) 556,264,845
Loss for the year – – – – – (30,041,779) 24,383,240 (5,658,539)
Total comprehensive
loss for the year – – – – – (30,041,779) 24,383,240 (5,658,539)
Transactions with
owners
Ordinary Shares issued
at a premium during
the year 237,000 15,666,000 – 10,670,000 – – – 26,573,000
Share issue costs – (49,735) – (48,116) – – – (97,851)
Movement in special
reserve – – (349,856) – 349,856 – – –
Dividends paid – – – – (36,384,962) – – (36,384,962)
As at 31 March 2024 5,050,995 331,302,899 – 10,621,884 75,089,894 95,542,635 23,088,186 540,696,493
Capital reduction reserve and revenue reserves are available to the Company for distributions to Shareholders as determined by the
Directors.
The notes on pages 66 to 81 form an integral part of these financial statements.
Financial Statements
Annual Report for year ended 31 March 2025
65
Statement of Cash Flows
For the Year Ended 31 March 2025
Notes
Year Ended
31 March
2025
(£)
Year Ended
31 March
2024
(£)
Cash flows generated from operating activities
Profit/(loss) for the year 6,184,203 (5,658,539)
Net loss on investments at fair value through profit and loss 3,177,919 30,041,779
Decrease in trade and other receivables 405,499 323,973
Decrease in trade and other payables (1,483,508) (896,407)
Net cash generated from operating activities 8,284,113 23,810,806
Cash flows used in investing activities
Funding of investments (77,640,212) (69,850,873)
Loan principal repayment from investment 45,870,425 3,678,725
Net cash used in investing activities (31,769,787) (66,172,148)
Cash flows used in financing activities
Proceeds from issue of Ordinary Shares at a premium – 15,806,000
Share issue costs – (97,851)
Dividends paid (27,586,473) (36,384,962)
Net cash outflow from financing activities (27,586,473) (20,676,813)
Net decrease in cash and cash equivalents for the year (51,072,147) (63,038,155)
Cash and cash equivalents at the beginning of the year 60,667,572 123,705,727
Cash and cash equivalents at the end of the year 9,595,425 60,667,572
During the year, interest received by the Company from investments totalled £15,664,565 (2024: £29,155,404) and interest received from
bank deposits totalled £875,316 (2024: £3,143,387).
Total repayments from subsidiaries during the year amounted to £61,534,990 (2024: £32,834,129).
The notes on pages 66 to 81 form an integral part of these financial statements.
Financial Statements
66
Gore Street Energy Storage Fund plc
1. General information
Gore Street Energy Storage Fund plc (the “Company”), a public limited company limited by shares was incorporated and registered in
England and Wales on 19 January 2018 with registered number 11160422. The registered office of the Company is 16-17 Little Portland
Street, First Floor, London, W1W 8BP.
Its share capital is denominated in Pound Sterling (GBP) and currently consists of Ordinary Shares. The Company’s principal activity is to
invest in a diversified portfolio of utility scale energy storage projects currently located in the UK, the Republic of Ireland, North America
and Germany.
2. Basis of preparation
STATEMENT OF COMPLIANCE
The annual financial statements have been prepared in accordance with UK adopted international accounting standards. The Company has
also adopted the Statement of Recommended Practice issued by the Association of Investment Companies which provides guidance on the
presentation of supplementary information.
The Company is an investment entity in accordance with IFRS 10 which holds all its subsidiaries at fair value and therefore prepares
unconsolidated accounts only.
FUNCTIONAL AND PRESENTATION CURRENCY
The currency of the primary economic environment in which the Company operates (the functional currency) is Pound Sterling
(“GBPor £”) which is also the presentation currency.
GOING CONCERN
In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting
Council. After making enquiries and bearing in mind the nature of the Company’s business and assets, the Directors consider the
Company to have adequate resources to continue in operational existence over the period to 30 September 2026, being at least
12months from the date of approval of the financial statements. As such, they have adopted the going concern basis in preparing the
annual report and financial statements.
As at 31 March 2025, the Company had net current assets of £9 million and had cash balances of £9.6 million (excluding cash
balances within investee companies), which are sufficient to meet current obligations as they fall due. The Company had no
contingencies and significant capital commitments as at the 31 March 2025. The Company is a guarantor to GSES1 Limited’s
revolving credit facility with Santander. During the year this facility was upsized from £50m to £100m, with an extended term to 2028.
The Company also upsized the project-level debt with First Citizens Bank to complete the buildout of the 200 MW Big Rock project,
from an initial $60m to $90m. The Aggregate Group Debt as of 31 March 2025 was at 17.8% of GAV with £56.3 million in debt
headroom available. There is no debt held at the Company level.
Financial forecast models have been reviewed for the going concern period which consider available cash and existing debt capacity at the
start of the period and key financial assumptions at the Company level as well as at the project level. These financial assumptions include
expected remaining capital expenditure on portfolio companies and cash generated by the portfolio companies available to be distributed to
the Company, as well as ongoing administrative costs for the Company and intermediary holding companies. Expected inflows and outflows
(including interest repayments) on the external debt facility at GSES 1 level and the project-level debt in California are also considered.
As part of the going concern assessment the Directors have modelled downside scenarios considering potential changes in trading
performance. The Directors consider the following scenarios:
• A base case scenario based on a blended average mid-case scenario from third-party consultants;
• Although a simultaneous reduction in project companies’ revenue across the five grids they operate is not considered likely,
aplausible 20% average reduction in base case revenue has been considered as a downside scenario.
This analysis shows that, under both the base case and downside scenarios, the Company is expected to have comfortably
sufficient financial resources available to meet current obligations and commitments as they fall due for at least 18 months until
30September2026.
The Directors acknowledge their responsibilities in relation to the financial statements for the year ended 31 March 2025 and have
prepared the financial statement on a going concern basis. The Company expects to meet its obligations as and when they fall due for
at least the next twelve months to 30 September 2026.
Notes to the Financial Statements
For the Year Ended 31 March 2025
Financial Statements
Annual Report for year ended 31 March 2025
67
2. Basis of preparation (continued)
OPERATING SEGMENTS
Under IFRS 8, particular classes of entities are required to disclose information about any of their individual operating segments. All of
the Company’s portfolio is held through the Company’s direct subsidiary, GSES 1 Limited. Therefore, the Directors are of the opinion
that there is only one segment and therefore no operating segment information is given.
3. Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amount of assets, liabilities, income and expenses. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected.
During the year the Directors considered the following significant judgements, estimates and assumptions:
ASSESSMENT AS AN INVESTMENT ENTITY
Entities that meet the definition of an investment entity within IFRS 10 are required to measure their subsidiaries at fair value through
profit or loss rather than consolidate them unless they provided investment-related services to the Company. As such, the Directors
are required to make a judgement as to whether the Company continues to meet the definition of an investment entity. To determine
this, the Company is required to satisfy the following three criteria:
a) the Company obtains funds from one or more investors for the purpose of providing those investors with investment management
services;
b) the Company commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation,
investment income, or both; and
c) the Company measures and evaluates the performance of substantially all of its investments on a fair value basis.
The Company meets the criteria as follows:
• the stated strategy of the Company is to deliver stable returns to shareholders through a mix of energy storage investments;
• the Company provides investment management services and has several investors who pool their funds to gain access to
infrastructure related investment opportunities that they might not have had access to individually; and
• the Company has elected to measure and evaluate the performance of all of its investments on a fair value basis. The fair value
method is used to represent the Company’s performance in its communication to the market, including investor presentations.
In addition, the Company reports fair value information internally to Directors, who use fair value as the primary measurement
attribute to evaluate performance.
Having assessed the criteria above and in their judgement, the Directors are of the opinion that the Company has all the typical
characteristics of an investment entity and continues to meet the definition in the standard. This conclusion will be reassessed on an
annual basis.
VALUATION OF INVESTMENTS
Significant estimates in the Company’s financial statements include the amounts recorded for the fair value of the investments. By
their nature, these estimates and assumptions are subject to measurement uncertainty and the effect on the Company’s financial
statements of changes in estimates in future periods could be significant. These estimates are discussed in more detail in note 16.
4. New and revised standards and interpretations
NEW AND REVISED STANDARDS AND INTERPRETATIONS
The accounting policies used in the preparation of the financial statements have been consistently applied during the year ended
31March 2025.
In January 2020, the International Accounting Standards Board issued amendments to IAS 1: Presentation of Financial Statements to
clarify how an entity classifies debt and other financial liabilities as current or non-current. The amendments specify that covenants to be
complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the
amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments
are effective for annual reporting periods beginning on or after 1 January 2024 and having reviewed the amendments, the Board is of the
opinion that these amendments will not have a material impact on the Company’s financial statements.
There have been no other new standards, amendments to current standards, or new interpretations which the directors feel have a
material impact on these financial statements.
Financial Statements
68
Gore Street Energy Storage Fund plc
4. New and revised standards and interpretations (continued)
NEW AND REVISED IFRS IN ISSUE BUT NOT YET EFFECTIVE
In April 2024, the International Accounting Standards Board issued a new standard aimed at improving the usefulness of
information presented and disclosed in financial statements. The new Standard, IFRS 18 Presentation and Disclosure in Financial
Statements, will give investors more transparent and comparable information about companies’ financial performance, thereby
enabling better investment decisions. It will affect all companies using IFRS Accounting Standards. The new standard is effective for
annual reporting periods beginning on or after 1 January 2027 and having reviewed the amendments, the Board is of the opinion
that these amendments will not have a material impact on the Company’s NAV but could change the presentation of its income
statement.
5. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below:
INVESTMENT INCOME
Interest income is recognised on an accrual basis in the Revenue account of the Statement of Comprehensive Income.
Investment income arising from fair value gains and pertaining to the portfolio assets is recognised on an accruals basis, with amounts
received in cash recognised in investment income and the unrealised portion disclosed in net gain on investments at fair value through
profit and loss.
EXPENSES
Expenses are accounted for on an accrual basis and charged to the Statement of Comprehensive Income. Share issue costs are allocated
to equity. Expenses are charged through the Revenue account except those which are capital in nature, these include those which are
incidental to the acquisition, disposal or enhancement of an investment, which are accounted for through the Capital account.
NET GAIN OR LOSS ON INVESTMENTS AT FAIR VALUE THROUGH PROFIT AND LOSS
Gains or losses arising from changes in the fair value of investments are recognised in the Capital account of the Statement of
Comprehensive Income in the period in which they arise. The value of the investments may be increased or reduced by the assessed
fair value movement.
TAXATION
The Company is approved as an Investment Trust Company (“ITC”) under sections 1158 and 1159 of the Corporation Taxes Act 2010
and Part 2 Chapter 1 Statutory Instrument 2011/29999 for accounting periods commencing on or after 25 May 2018. The approval
is subject to the Company continuing to meet the eligibility conditions of the Corporations Tax Act 2010 and the Statutory Instrument
2011/29999. The Company intends to ensure that it complies with the ITC regulations on an ongoing basis and regularly monitors the
conditions required to maintain ITC status.
There is a single UK corporation tax rate of 25%. Current Tax and movements in deferred tax asset and liability are recognised in the
Statement of Comprehensive Income except to the extent that they relate to the items recognised as direct movements in equity, in
which case they are similarly recognised as a direct movement in equity. Current tax is the expected tax payable on any taxable income
for the period, using tax rates enacted or substantively enacted at the end of the relevant period. Any closing deferred tax balances
have been calculated at 25% as this is the rate expected to apply in future periods.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the Statement of
Financial Position date where transactions or events that result in an obligation to pay more tax or a right to pay less tax in the future
have occurred. Timing differences are differences between the Company’s taxable profits and its results as stated in the financial
statements. Deferred taxation assets are recognised where, in the opinion of the Directors, it is more likely than not that these amounts
will be realised in future periods, at the tax rate expected to be applicable at realisation.
INVESTMENT IN SUBSIDIARIES
Subsidiaries are entities controlled by the Company. Control exists when the Company is exposed, or has rights, to variable returns
from its involvement with the subsidiary entity and has the ability to affect those returns through its power over the subsidiary entity.
In accordance with the exception under IFRS 10 Consolidated financial statements, the Company is an investment entity and therefore
only consolidates subsidiaries if they provide investment management services and are not themselves investment entities. All
subsidiaries are investment entities and held at fair value in accordance with IFRS 9 and therefore not consolidated.
Financial Statements
Annual Report for year ended 31 March 2025
69
5. Summary of significant accounting policies (continued)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank and call deposits held with the bank with original maturities of three months or less.
TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognised initially at fair value and subsequently stated at amortised cost less loss allowance which is
calculated using the provision matrix of the expected credit loss model.
TRADE AND OTHER PAYABLES
Trade and other payables are recognised initially at fair value and subsequently stated at amortised cost.
DIVIDENDS
Dividends are recognised, as a reduction in equity in the financial statements. Interim equity dividends are recognised when legally
payable. Final equity dividends will be recognised when approved by the Shareholders.
EQUITY
Equity instruments issued by the Company are recorded at the amount of the proceeds received, net of directly attributable issue
costs. Costs not directly attributable to the issue are immediately expensed in the Statement of Comprehensive Income.
FINANCIAL INSTRUMENTS
In accordance with IFRS 9, the Company classifies its financial assets and financial liabilities at initial recognition into the categories of
amortised cost or fair value through profit or loss.
FINANCIAL ASSETS
The Company classifies its financial assets at amortised cost or fair value through profit or loss on the basis of both:
• the entity’s business model for managing the financial assets
• the contractual cash flow characteristics of the financial asset
Financial assets measured at amortised cost
The Company includes in this category short-term non-financing receivables including cash and cash equivalents, restricted cash, and
trade and other receivables.
Financial asset measured at fair value through profit or loss (FVPL)
A financial asset is measured at fair value through profit or loss if:
a) its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest (SPPI) on
the principal amount outstanding; or
b) it is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash
flows and sell; or
c) it is classified as held for trading (derivative contracts in an asset position); or
d) It is classified as an equity instrument.
The Company includes in this category equity instruments and loans to investments.
FINANCIAL LIABILITIES
Financial liabilities measured at amortised cost
This category includes all financial liabilities, including short-term payables.
RECOGNITION AND DERECOGNITION
Financial assets and liabilities are recognised on trade date, when the Company becomes party to the contractual provisions of the
instrument. A financial asset is derecognised where the rights to receive cash flows from the asset have expired, or the Company has
transferred its rights to receive cash flows from the asset. The Company derecognises a financial liability when the obligation under the
liability is discharged, cancelled or expired.
Financial Statements
70
Gore Street Energy Storage Fund plc
5. Summary of significant accounting policies (continued)
IMPAIRMENT OF FINANCIAL ASSETS
The Company holds trade receivables with no financing component and which have maturities of less than 12 months at amortised
cost and, as such, has chosen to apply the simplified approach for expected credit losses (ECL) under IFRS 9 to all its trade
receivables.
FAIR VALUE MEASUREMENT AND HIERARCHY
Fair value is the price that would be received on the sale of an asset, or paid to transfer a liability, in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes
place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market.
Itis based on the assumptions that market participants would use when pricing the asset or liability, assuming they act in their
economic best interest.
The fair value hierarchy to be applied under IFRS 13 is as follows:
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are carried at fair value, and which will be recorded in the financial information on a recurring basis, the
Company will determine whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of
each reporting period.
6. Fees and expenses
ACCOUNTING, SECRETARIAL AND DIRECTORS
Apex Group Fiduciary Services (UK) Limited (“Apex”) had been appointed as administrator. Through an Administration agreement, Apex is
entitled to an annual fee of £50,000 for the provision of accounting and administration services based on a Company Net Asset Value of
up to £30 million. An ad valorem fee based on total assets of the Company which exceed £30 million will be applied as follows:
• 0.05% on a Net Asset Value of £30 million to £75 million
• 0.025% on a Net Asset Value of £75 million to £150 million
• 0.02% on a Net Asset Value thereafter.
During the year, expenses incurred with Apex for accounting and administrative services amounted to £150,514 (2024: £159,714), with
£150,515 being outstanding and payable at the year end (2024: £39,414).
AIFM
The AIFM up until 31 March 2025, Gore Street Capital Limited (the “AIFM”), was entitled to receive from the Company, in respect of its
services provided under the AIFM agreement, a fee of £75,000 per annum for the term of the AIFM agreement. On 31 March 2025,
Gore Street Investment Management Limited replaced Gore Street Capital Limited as AIFM and is entitled the same fee.
During the year, AIFM fees amounted to £74,897 (2024: £75,104), there were no outstanding fees payable at the year end.
At the year end, an amount of £18,854 paid in the year to Gore Street Capital Limited in respect of these fees, is being disclosed in
prepayments as it relates to the period 1 April 2025 to 30 June 2025.
INVESTMENT ADVISORY
The fees relating to the Investment Advisor are disclosed within note 21 Transactions with related parties.
7. Investment Income
31 March
2025
(£)
31 March
2024
(£)
Bank interest income 875,316 3,143,387
Loan interest income received from subsidiaries 15,664,565 29,155,404
16,539,881 32,298,791
Financial Statements
Annual Report for year ended 31 March 2025
71
8. Administrative and other expenses
31 March
2025
(£)
31 March
2024
(£)
Accounting and Company Secretarial fees 150,514 171,930
Auditor’s remuneration (see below) 304,100 273,000
Bank interest and charges 4,185 9,515
Directors’ remuneration and expenses 330,118 306,556
Directors & Officers insurance 17,051 19,272
Foreign exchange loss 4 14
Investment advisory fees 5,107,713 5,542,596
Legal and professional fees 850,175 1,110,554
AIFM fees 74,897 75,104
Marketing fees 51,284 56,295
Sundry expenses 288,505 361,070
7,178,546 7,925,906
Included in legal and professional fees is a fee of £606,112 to Gore Street Services Limited (‘GSS’), a direct subsidiary of the Gore
Street Capital Limited, for commercial management services as detailed further in Note 21.
During the year, the Company received the following services from its auditor, Ernst & Young LLP.
31 March
2025
(£)
31 March
2024
(£)
Audit services
Statutory audit: Annual accounts – current year
285,000 254,500
Non-audit services
Other assurance services – Interim accounts
19,100 18,500
Total audit and non-audit services
304,100 273,000
The statutory auditor is remunerated £171,450 (2024: £170,790), in relation to audits of the subsidiaries. This amount is not
included in the above.
9. Taxation
The Company is recognised as an Investment Trust Company (“ITC”) for accounting periods beginning on or after 25 May 2018 and is
taxed at the main rate of 25%. ITCs are exempt from UK corporation tax on their capital gains. Additionally, ITCs may designate all or
part of dividends distributions to shareholders as an interest distribution, which is tax deductible, to the extent that it has “qualifying
interest income” for the accounting period. Therefore, there is no corporate tax charge for the year (2024: £nil).
31 March
2025
(£)
31 March
2024
(£)
(a) Tax charge in profit and loss account
UK Corporation tax – –
(b) Reconciliation of the tax charge for the year
Profit/(loss) before tax 6,184,203 (5,658,539)
Tax at UK standard rate of 25% (2024: 25%) 1,546,051 (1,414,635)
Effects of:
Expenses not deductible for tax purposes 5,689,485 7,552,770
Group relief claimed (1,856,348) –
Income not taxable – (2,589)
Tax deductible interest distributions (4,129,188) (7,219,157)
Movement in deferred tax not recognised (1,250,000) 1,083,611
Tax charge for the year – –
There is no corporate tax charge for the period (2024: £nil). The Company may utilise available tax losses from within the UK tax group
to relieve future taxable profits in the Company and may also claim deductions on future distributions or parts thereof designated as
interest distributions. Therefore, taxable profits are not expected for the foreseeable future and as a result deferred tax asset measured
at the prospective corporate rate of 25% (2024: 25%) of £1,667,202 (2024: £2,917,202) is not being recognised.
Financial Statements
72
Gore Street Energy Storage Fund plc
10. Earnings per share
Earnings per share (EPS) amounts are calculated by dividing the profit or loss for the period attributable to ordinary equity holders
of the Company by the weighted average number of Ordinary Shares in issue during the period. As there are no dilutive instruments
outstanding, basic, and diluted earnings per share are identical.
31 March
2025
31 March
2024
Net gain/(loss) attributable to ordinary shareholders £6,184,203 (£ 5,658,539)
Weighted average number of Ordinary Shares for the year 505,099,478 485,524,888
Profit/(loss) Per share – Basic and diluted (pence) 1.22 (1.17)
11. Investments
Place of business Percentage ownership
31 March
2025
(£)
31 March
2024
(£)
GSES1 Limited (“GSES1”)
England & Wales 100%
510,251,383
470,570,558
Porterstown Battery Storage
Limited (“Porterstown”)
Republic of Ireland 49%
–
6,765,120
Kilmannock Battery Storage
Limited (“Kilmannock”)
Republic of Ireland 49%
–
4,323,837
Reconciliation
31 March
2025
(£)
31 March
2024
(£)
Opening balance 481,659,515 434,762,146
Loans advanced during the year 88,407,212 69,850,873
Loan repayments during the year (45,870,425) (3,678,725)
Loan interest received (15,664,565) (29,155,404)
Loan interest accrued from GSES 1 Limited 35,244,421 29,971,133
(Transfer)/purchase of investments in Porterstown and Kilmannock (10,767,000) 10,767,000
Total fair value movement on equity investment (22,757,775) (30,857,508)
510,251,383 481,659,515
The Company is not contractually obligated to provide financial support to the subsidiaries and associate, except as guarantor to
the debt facility entered into by its direct subsidiary GSES 1 Limited, and there are no restrictions in place in passing monies up the
structure.
The investment in GSES1 is financed through equity and a loan facility available to GSES1. The facility may be drawn upon, to any
amount agreed by the Company as lender, and is available for a period of 20 years from 28 June 2018. The rest of the investment in
GSES1 is funded through equity. The amount drawn on the facility at 31 March 2025 was £417,891,112 (2024: £375,354,326).
The loan is interest bearing and attracts interest at 8.5% per annum.
Realisation of increases in fair value in the indirect subsidiaries will be passed up the structure as repayments of loan interest and
principal. The Company holds a 100% investment in GSES 1. GSES 1 in turn holds investments in various holding companies and
operating assets as detailed below.
Financial Statements
Annual Report for year ended 31 March 2025
73
11. Investments (continued)
Immediate Parent Place of business
Percentage
Ownership Investment
GSF Albion Limited (“GSF Albion”) GSES1 England & Wales 100%
NK Boulby Energy Storage Limited GSF Albion England & Wales 99.998% Boulby
Ferrymuir Energy Storage Limited GSF Albion England & Wales 100% Ferrymuir
Kiwi Power ES B Limited GSF Albion England & Wales 49% Cenin
GSF IRE Limited (“GSF IRE”) GSES1 England & Wales 100%
Mullavilly Energy Limited GSF IRE Northern Ireland 51% Mullavilly
Drumkee Energy Limited GSF IRE Northern Ireland 51% Drumkee
Porterstown Battery Storage Limited
(1)
GSF IRE Republic of Ireland 100% Porterstown
Kilmannock Battery Storage Limited
(1)
GSF IRE Republic of Ireland 100% Kilmannock
GSF England Limited (“GSF England”) GSES1 England & Wales 100%
GS10 Energy Storage Limited (formerly Ancala
Energy Storage Limited)
GSF England England & Wales 100% Beeches, Blue House Farm,
Brookhall, Fell View, Grimsargh,
Hermitage, Heywood Grange,
High Meadow, Hungerford, Low
Burntoft
Breach Farm Energy Storage Limited GSF England England & Wales 100% Breach Farm
Hulley Road Energy Storage Limited GSF England England & Wales 100% Hulley Road
Larport Energy Storage Limited GSF England England & Wales 100% Larport
Lascar Battery Storage Limited GSF England England & Wales 100% Lascar
OSSPV001 Limited GSF England England & Wales 100% Lower Road, Port of Tilbury
Stony Energy Storage Limited GSF England England & Wales 100% Stony
Enderby Battery Storage Limited GSF England England & Wales 100% Enderby
Middleton Energy Storage Limited GSF England England & Wales 100% Middleton
GSF Atlantic Limited GSES1 England & Wales 100%
GSF Americas Inc. GSF Atlantic Delaware 100%
GSF Cremzow GmbH & Co KG GSF Atlantic Germany 90% Cremzow LP
GSF Cremzow Verwaltungs GmbH GSF Atlantic Germany 90% Cremzow GP
Snyder ESS Assets, LLC GSF Americas Delaware 100% Snyder
Sweetwater ESS Assets, LLC GSF Americas Delaware 100% Sweetwater
Westover ESS Assets, LLC GSF Americas Delaware 100% Westover
Cedar Hill ESS Assets, LLC GSF Americas Delaware 100% Cedar Hill
Mineral Wells ESS Assets, LLC GSF Americas Delaware 100% Mineral Wells
Wichita Falls ESS Assets, LLC GSF Americas Delaware 100% Wichita Falls
Mesquite ESS Assets, LLC GSF Americas Delaware 100% Mesquite
Dogfish ESS Assets, LLC GSF Americas Delaware 100% Dogfish
Big Rock ESS Assets, LLC GSF Americas Delaware 100% Big Rock
Mucklagh Battery Storage Facility Limited GSF IRE Republic of Ireland 51% Mucklagh
Gore Street Facilities Management Inc. GSF Americas Delaware 100%
(1)
On 23 April 2024, further to the direct acquisition of the remaining 49% of both Porterstown Battery Storage Limited and Kilmannock Battery Storage Limited on
25March 2024, the Company transferred these new equity stakes down to GSF IRE Limited by way of an intercompany loan through GSES 1 Limited.
Financial Statements
74
Gore Street Energy Storage Fund plc
12. Cash and cash equivalents
31 March
2025
(£)
31 March
2024
(£)
Cash at bank 9,595,425 55,306,092
Restricted cash – 5,361,480
9,595,425 60,667,572
Restricted cash comprised cash held as collateral for future contractual payment obligations and deferred payments payable from
indirect subsidiaries of the Company to third party suppliers in relation to the Big Rock project. Collateral was released to the
Company upon settlement of the contractual payments, made in accordance with the applicable contracts. The final payment to the
supplier under the contractual agreement was made in April 2024 and subsequently the remaining £5,361,480 plus interest earned
was released from the collateral account in June 2024.
13. Trade and other receivables
31 March
2025
(£)
31 March
2024
(£)
VAT recoverable 27,406 185,712
Prepaid Director’s and Officer’s insurance 1,912 2,111
Other Prepayments 46,171 118,218
Other Debtors 23,681 –
Bank interest receivable 15,184 213,812
114,354 519,853
14. Trade and other payables
31 March
2025
(£)
31 March
2024
(£)
Administration fees 150,515 39,414
Audit fees 285,000 276,500
Directors remuneration 10,395 9,824
Professional fees 221,029 1,823,031
Other creditors – 1,678
666,939 2,150,447
15. Categories of financial instruments
31 March
2025
(£)
31 March
2024
(£)
Financial assets
Financial assets at amortised cost
Cash and cash equivalents 9,595,425 60,667,572
Trade and other receivables 114,354 519,853
Fair value through profit and loss
Investment 510,251,383 481,659,515
Total financial assets 519,961,162 542,846,940
Financial liabilities
Financial liabilities at amortised cost
Trade and other payables 666,939 2,150,447
Total financial liabilities 666,939 2,150,447
At the balance sheet date, all financial assets and liabilities were measured at amortised cost except for the investment in equity and
loans to subsidiaries which are measured at fair value.
Financial Statements
Annual Report for year ended 31 March 2025
75
16. Fair Value measurement
VALUATION APPROACH AND METHODOLOGY
There are three traditional valuation approaches that are generally accepted and typically used to establish the value of a business; the
income approach, the market approach, and the net assets (or cost based) approach. Within these three approaches, several methods
are generally accepted and typically used to estimate the value of a business.
The Company has chosen to utilise the income approach, to value its subsidiaries investments, which indicates value based on the
sum of the economic income that an asset, or group of assets, is anticipated to produce in the future. Therefore, the income approach
is typically applied to an asset that is expected to generate future economic income, such as a business that is considered a going
concern. Free cash flow to total invested capital is typically the appropriate measure of economic income. The income approach is
the Discounted Cash Flow (“DCF”) approach and the method discounts free cash flows using an estimated discount rate (Weighted
Average Cost of Capital (“WACC”)).
VALUATION PROCESS
The Company’s portfolio of lithium-ion energy storage investments has a total capacity of 1.25GW (2024: 1.25GW). As at
31March2025, 421.4 MW of the Company’s total portfolio was operational (2024: 371.5 MW) and 828.6 MW pre-operational
(2024:873.5 MW) (the “Investments”).
The Investments comprise projects, based in the UK, the Republic of Ireland, mainland Europe and North America. The Directors review
and approve these valuations following appropriate challenge and examination. The current portfolio consists of non-market traded
investments and valuations are analysed using forecasted cash flows of the assets and used the discounted cash flow approach as the
primary approach for the valuation. The Investment Manager prepares financial models utilising revenue forecasts from external parties
to determine the fair value of the Company’s investments and the Company engages external, independent, and qualified valuers to verify
the valuations.
As at 31 March 2025, the fair value of the portfolio of investments has been determined by the Investment Manager and reviewed by
BDO UK LLP.
The below table summarises the significant unobservable inputs to the valuation of investments.
Significant Inputs Fair Value
Investment Portfolio
Valuation
technique Description (Range)
31 March
2025
(£)
31 March
2024
(£)
Great Britain DCF Discount Rate 7.25% - 12% 194,056,145 197,453,898
(excluding Northern Ireland) Revenue / MW / hr £7 - £12
Northern Ireland DCF Discount Rate 8% - 9.25% 35,179,794 44,381,239
Revenue / MW / hr €9 - €23
Republic of Ireland DCF Discount Rate 8.25% - 11% 52,701,213 54,445,455
Revenue / MW / hr €8 - €11
Other OECD DCF Discount Rate 9.25% - 10.75% 269,536,752 196,268,784
Revenue / MW / hr €9 - €12 / $7 - $23
Holding Companies NAV (41,222,521) (10,889,861)
Total Investments 510,251,383 481,659,515
The fair value of the holding companies represents the net assets together with any cash held within those companies in order to settle
any operational costs.
Financial Statements
76
Gore Street Energy Storage Fund plc
16. Fair Value measurement (continued)
• Sensitivity Analysis
The below table reflects the range of sensitivities in respect of the fair value movements of the Company’s investments and via GSES 1.
Significant Inputs Estimated effect on Fair Value
Investment Portfolio
Valuation
technique Description Sensitivity
31 March
2025
(£)
31 March
2024
(£)
Great Britain (excluding Northern Ireland) DCF Revenue + 10 % 38,091,863 40,018,900
- 10 % (38,317,304) (40,636,523)
Discount rate +1 % (26,724,999) (29,165,634)
-1 % 31,192,033 34,203,482
Northern Ireland DCF Revenue + 10 % 4,583,713 4,773,587
- 10 % (4,580,601) (4,776,693)
Discount rate +1 % (2,621,530) (2,657,793)
-1 % 3,022,662 3,066,071
Exchange rate +3 % (1,115,314) (1,222,696)
-3 % 1,184,308 1,298,082
Republic of Ireland DCF Revenue + 10 % 15,595,403 7,892,427
- 10 % (16,309,692) (9,622,279)
Discount rate +1 % (11,160,731) (8,951,937)
-1 % 13,224,245 10,423,597
Exchange rate +3 % (1,442,480) (1,202,234)
-3 % 1,531,706 1,276,599
Other OECD DCF Revenue +10 % 35,149,719 29,656,856
-10 % (36,026,351) (30,077,236)
Discount rate +1 % (18,103,268) (16,265,625)
-1 % 20,583,145 18,675,891
Exchange rate +3 % (8,030,124) (5,675,505)
-3 % 8,525,811 6,026,567
High case (+10%) and low case (-10%) revenue information used to determine sensitivities are provided by third party pricing sources.
• Valuation of financial instruments
The investments at fair value through profit or loss are Level 3 in the fair value hierarchy. No transfers between levels took place during
the year. The fair value of other financial instruments held during the year approximates their carrying amount.
17. Financial risk management
The Company is exposed to certain risks through the ordinary course of business and the Company’s financial risk management objective
is to minimise the effect of these risks. The management of risks is performed by the Directors of the Company and the exposure to each
financial risk is considered potentially material to the Company, how it arises and the policy for managing it is summarised below:
• Capital risk management
The capital structure of the Company at year end consists of equity attributable to equity holders of the Company, comprising issued
capital, reserves and accumulated gains. The Board continues to monitor the balance of the overall capital structure so as to maintain
investor and market confidence. The Company is not subject to any external capital requirements.
• Counterparty risk
The Company is exposed to third party credit risk in several instances, including the possibility that counterparties with which the
Company and its subsidiaries, together the Group, contract with, may default or fail to perform their obligations in the manner anticipated
by the Group. Such counterparties may include (but are not limited to) manufacturers who have provided warranties in relation to the
supply of any equipment or plant, EPC contractors who have constructed the Company’s projects, who may then be engaged to operate
assets held by the Company, property owners or tenants who are leasing ground space and/or grid connection to the Company for the
location of the assets, contractual counterparties who acquire services from the Company underpinning revenue generated by each
project or the energy suppliers, or demand aggregators, insurance companies who may provide coverage against various risks applicable
to the Company’s assets (including the risk of terrorism or natural disasters affecting the assets) and other third parties who may owe
sums to the Company. In the event that such credit risk crystallises, in one or more instances, and the Company is, for example, unable
to recover sums owed to it, make claims in relation to any contractual agreements or performance of obligations (e.g. warranty claims) or
require the Company to seek alternative counterparties, this may materially adversely impact the investment returns.
Financial Statements
Annual Report for year ended 31 March 2025
77
17. Financial risk management (continued)
Further the projects in which the Company may invest will not always benefit from a turnkey contract with a single contractor and so will
be reliant on the performance of several suppliers. Therefore, the key risks during battery installation in connection with such projects
are the counterparty risk of the suppliers and successful project integration. The Company accounts for its exposure to counterparty risk
through the fair value of its investments by using appropriate discount rates which adequately reflects its risk exposure.
The Company regularly assesses the creditworthiness of its counterparties and enters into counterparty arrangements which are
financially sound and ensures, where necessary, the sourcing of alternative arrangements in the event of changes in the creditworthiness
of its present counterparties.
• Concentration risk
The Company’s investment policy is limited to investment in energy storage infrastructure in the UK, Republic of Ireland, North
America, Western Europe, Australia, Japan, and South Korea. The value of investments outside of the UK is not intended to exceed
60% of Gross Asset Value of the Company. As at 31 March 2025, investments outside of the UK were at 51% (2024: 42%) of the
Gross Asset Value. Significant concentration of investments in any one sector and location may result in greater volatility in the value of
the Group’s investments and consequently the Net Asset Value and may materially and adversely affect the performance of the Group
and returns to Shareholders. The Company currently has investments located across 5 different grids in the UK, Republic of Ireland,
North America (ERCOT and CAISO), and Germany. This diversification reduces exposure to any single grid. The investment policy also
limits the exposure to any single asset within the portfolio to 25% of the Gross Asset Value of the Company.
• Credit risk
The Company regularly assesses its credit exposure and considers the creditworthiness of its customers and counterparties. Cash
and bank deposits are held with Barclays plc, Santander UK plc and JPMorgan Chase and Co., all reputable financial institutions with
Moody’s credit ratings of Baa1, A2 and A2 respectively.
• Liquidity risk
The objective of liquidity management is to ensure that all commitments which are required to be funded can be met out of readily
available and secure sources of funding. The Company may, where the Board deems it appropriate, use short-term leverage to acquire
assets but with the intention that such leverage be repaid with funds raised through a new issue of equity or cash flow from the
Company’s portfolio. Such leverage will not exceed 30 per cent. at the time of borrowing of Gross Asset Value without Shareholder
approval. The Company intends to prudently introduce a conservative amount of debt throughout the portfolio. The Company’s only
financial liabilities as at 31 March 2025 are trade and other payables. The Company has sufficient cash reserves to cover these in the
short-medium term. The Company’s cash flow forecasts are monitored regularly to ensure the Company is able to meet its obligations
when they fall due. The Company’s investments are level 3 and thus illiquid and this is taken into assessment of liquidity analysis.
The following table reflects the maturity analysis of financial assets and liabilities.
31 March 2025 < 1 year 1 to 2 years 2 to 5 years > 5 years Total
Financial assets
Cash at bank 9,595,425 – – – 9,595,425
Trade and other receivables 114,354 – – – 114,354
Fair value through profit and loss
Investments – – – 510,251,383 510,251,383
Total financial assets 9,709,779 – – 510,251,383 519,961,162
Financial liabilities
Financial liabilities at amortised cost
Trade and other payables 666,939 – – – 666,939
Total financial liabilities 666,939 – – – 666,939
31 March 2024 < 1 year 1 to 2 years 2 to 5 years > 5 years Total
Financial assets
Cash at bank 55,306,092 – – – 55,306,092
Restricted cash 5,361,480 – – – 5,361,480
Trade and other receivables 519,853 – – – 519,853
Fair value through profit and loss
Investments – – – 481,659,515 481,659,515
Total financial assets 61,187,425 – – 481,659,515 542,846,940
Financial liabilities
Financial liabilities at amortised cost
Trade and other payables 2,150,447 – – – 2,150,447
Total financial liabilities 2,150,447 – – – 2,150,447
Financial Statements
78
Gore Street Energy Storage Fund plc
17. Financial risk management (continued)
Investments include both equity and debt instruments. As the equity instruments have no contractual maturity date, they have been
included with the >5-year category. Additionally, the debt instruments have an original maturity of 20 years.
• Market risk
Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices. Market
risk reflects currency risk, interest rate risk and other price risks. The objective is to minimise market risk through managing and
controlling these risks to acceptable parameters, while optimising returns. The Company uses financial instruments in the ordinary
course of business, and also incurs financial liabilities, in order to manage market risks.
i) Currency risk
The majority of investments, together with the majority of all transactions during the current period were denominated in Pounds
Sterling.
The Company, via GSES 1 and its direct subsidiaries, holds three investments (Kilmannock, Porterstown and Mucklagh) in the
Republic of Ireland, an investment in Germany (Cremzow), and several investments in North America, creating an exposure to currency
risk. These investments have been translated into Pounds Sterling at year end and represent 64% (2024: 50%) of the Company’s
fair valued investment portfolio. The Company regularly monitors its exposure to foreign currency and executes appropriate hedging
arrangements in the form of forward contracts with reputable financial institutions to reduce this risk. These derivatives are held by the
Company’s subsidiaries. Refer to Note 16 for the sensitivity of valuations to changes in the exchange rates.
ii) Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial
instruments. The Company is exposed to interest rate risk on its cash balances held with counterparties, bank deposits, advances
to counterparties and through loans to related parties. Loans to related parties carry a fixed rate of interest for an initial period of
20years. The Company may be exposed to changes in variable market rates of interest and this could impact the discount rate
used in the investment valuations and therefore the valuation of the projects as well as the fair value of the loan receivables. Refer to
Note 16 for the sensitivity of valuations to changes in the discount rate. The Company currently has no external debt. The Company
continuously monitors its exposure to interest rate risk and where necessary will assess and execute hedging arrangements to mitigate
interest raterisk.
iii) Price risk
Price risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices. The
Company’s investments are susceptible to market price risk arising from uncertainties about future values of its portfolio assets. The
Company relies on the market knowledge of the experienced Investment Advisor, the valuation expertise of the third-party valuer BDO
and the use of third-party market forecast information to provide comfort with regard to fair market values of investments reflected in
the financial statements. The impact of changes in unobservable inputs to the underlying investments is considered in note 16.
18. Net asset value per share
Basic NAV per share is calculated by dividing the Company’s net assets as shown in the Statement of Financial Position that are
attributable to the ordinary equity holders of the Company by the number of Ordinary Shares outstanding at the end of the period.
Asthere are no dilutive instruments outstanding, basic, and diluted NAV per share are identical.
31 March
2025
31 March
2024
Net assets per Statement of Financial Position
£ 519,294,223 £ 540,696,493
Ordinary Shares in issue as at 31 March
505,099,478 505,099,478
NAV per share – Basic and diluted (pence)
102.81 107.05
Financial Statements
Annual Report for year ended 31 March 2025
79
19. Share capital and reserves
Share
capital
(£)
Share
premium
reserve
(£)
Merger
reserve
(£)
Capital
reduction
reserve
(£)
Capital
reserve
(£)
Revenue
reserve
(£)
Total
(£)
At 1 April 2024 5,050,995 331,302,899 10,621,884 75,089,894 95,542,635 23,088,186 540,696,493
Dividends paid – – (27,586,473) – – (27,586,473)
Profit / (loss) for the year – – – – (3,177,919) 9,362,122 6,184,203
At 31 March 2025 5,050,995 331,302,899 10,621,884 47,503,421 92,364,716 32,450,308 519,294,223
Share
capital
(£)
Share
premium
reserve
(£)
Special
reserve
(£)
Merger
reserve
(£)
Capital
reduction
reserve
(£)
Capital
reserve
(£)
Revenue
reserve
(£)
Total
(£)
At 1 April 2023 4,813,995 315,686,634 349,856 – 111,125,000 125,584,414 (1,295,054) 556,264,845
Issue of ordinary
£0.01 shares:
20 December
2023 140,000 15,666,000 – – – – – 15,806,000
Issue of ordinary
£0.01 shares:
25 March 2024 97,000 – – 10,670,000 – – – 10,767,000
Share issue
costs – (49,735) – (48,116) – – – (97,851)
Movement in
special reserve – – (349,856) – 349,856 – – –
Dividends paid – – – (36,384,962) – – (36,384,962)
Loss for the year – – – – – (30,041,779) 24,383,240 (5,658,539)
At 31 March
2024 5,050,995 331,302,899 – 10,621,884 75,089,894 95,542,635 23,088,186 540,696,493
SHARE ISSUES
Ordinary shareholders are entitled to all dividends declared by the Company and to all the Company’s assets after repayment of its
borrowings and ordinary creditors.
Ordinary shareholders have the right to vote at meetings of the Company. All ordinary Shares carry equal voting rights.
• Share premium reserve: represents the surplus of the gross proceeds of share issues over the nominal value of the shares, net of
the direct costs of equity issues and net of conversion amount.
• Special reserve: represents a non-distributable reserve totalling the amount of outstanding creditors at the date of the Company’s
approved reduction in capital. During the prior year, these creditors were paid off and the remaining special reserve has been
written off back against the capital reduction reserve.
• Merger reserve: represents a non-distributable reserve comprising any premium on a share issuance used as consideration for the
purpose of obtaining at least 90% equity stake in another company.
• Capital reduction reserve: represents a distributable reserve created following a Court approved reduction in capital.
• Capital reserve: represents a non-distributable reserve of unrealised gains and losses from changes in the fair values of
investments as recognised in the Capital account of the Statement of Comprehensive Income.
• Revenue reserve: represents a distributable reserve of cumulative gains and losses recognised in the Revenue account of the
Statement of Comprehensive Income.
The only movements in these reserves during the period are disclosed in the Statement of Changes in Equity.
Financial Statements
80
Gore Street Energy Storage Fund plc
20. Dividends
Dividend
per share
31 March
2025
(£)
31 March
2024
(£)
Dividends paid during the year
For the 3-month period ended 31 December 2022
2 Pence – 9,627,990
For the 3-month period ended 31 March 2023
1.5 pence – 7,220,992
For the 3-month period ended 30 June 2023
2 pence – 9,627,990
For the 3-month period ended 30 September 2023
2 pence – 9,907,990
For the 3-month period ended 31 December 2023
2 Pence 9,907,990 –
For the 3-month period ended 31 March 2024
1.5 pence 7,576,493 –
For the 3-month period ended 30 June 2024
1 pence 5,050,995 –
For the 3-month period ended 30 September 2024
1 pence 5,050,995 –
27,586,473 36,384,962
The table below sets out the proposed final dividend, together with the interim dividends declared, in respect of the financial year,
which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered.
Dividend
per share
31 March
2025
(£)
31 March
2024
(£)
Dividends declared for the year
For the 3-month period ended 30 June 2023
2 pence – 9,627,990
For the 3-month period ended 30 September 2023
2 pence – 9,907,990
For the 3-month period ended 31 December 2023
2 pence – 9,907,990
For the 3-month period ended 31 March 2024
1.5 pence – 7,576,492
For the 3-month period ended 30 June 2024
1 pence 5,050,995 –
For the 3-month period ended 30 September 2024
1 pence 5,050,995 –
For the 3-month period ended 31 December 2024
1 pence 5,050,995 –
For the 3-month period ended 31 March 2025
1 pence* 5,050,995 –
20,203,980 37,020,462
*An additional special dividend of 3.0 pence per share is expected when proceeds from the sale of the Big Rock Investment tax credits
(“ITCs”) are available for distribution.
21. Transactions with related parties
Following admission of the Ordinary Shares (refer to note 19), the Company and the Directors are not aware of any person who, directly or
indirectly, jointly, or severally, exercises or could exercise control over the Company. The Company does not have an ultimate controlling party.
Details of related parties are set out below:
DIRECTORS
Patrick Cox, Chair of the Board of Directors of the Company, is paid a director’s remuneration of £79,000 per annum, (2024:
£77,000), Caroline Banszky is paid a director’s remuneration of £59,000 per annum, (2024: £57,000), with the remaining directors’
remuneration of £49,000 each per annum, (2024: £47,000).
Total director’s remuneration, associated employment costs and expenses of £330,118 were incurred in respect of the year with
£10,395 being outstanding and payable at the year end.
Financial Statements
Annual Report for year ended 31 March 2025
81
21. Transactions with related parties (continued)
INVESTMENT ADVISOR, COMMERCIAL MANAGER AND ROUTE TO MARKET PROVIDER
The Investment Advisor, Gore Street Investment Management Limited (the “Investment Advisor”), is entitled to advisory fees under the
terms of the Investment Advisory Agreement amounting to 1% of Adjusted Net Asset Value. The advisory fee will be calculated as at
each NAV calculation date and payable quarterly in arrears.
For the avoidance of doubt, where there are C Shares in issue, the advisory fee will be charged on the Net Asset Value attributable to
the Ordinary Shares and C Shares respectively. As at 31 March 2025 there are no C shares in issue.
For the purposes of the quarterly advisory fee, Adjusted Net Asset Value means Net Asset Value, minus Uncommitted Cash.
Uncommitted Cash means all cash on the Company balance sheet that has not been allocated for repayment of a liability on the
balance sheet or any earmarked capital costs of any member of the Group. At 31 March there was no uncommitted cash.
Investment advisory fees of £5,107,713 (2024: £5,542,596) were incurred during the year, of which £nil was outstanding as at
31March 2025 (2024: £1,387,354 outstanding).
As of 1 October 2025 the fees payable under this agreement will be substantially reduced to a fee calculated at 1% per annum of the
average (50:50) of market capitalisation and adjusted NAV. The revised investment management fee would be subject to a cap of 1%
of adjusted NAV. Investment management fees would be paid quarterly and market capitalization would be calculated as the average
of the closing daily market capitalisation on each business day in the quarter (Ordinary Shares held by the Company in treasury are to
be excluded).
Noperformance fees were accrued as at 31 March 2025, (2024: £nil). Based on the amendments stated above, performance fee has
fallen away effective 1 October 2025.
GSS, a direct subsidiary to Gore Street Capital Limited, provided commercial management services to the Company resulting in
charges in the amount of £606,112 being paid by the Company (2024: £672,351).
During the year, five assets of the Company’s GB portfolio have been onboarded by the Gore Street Capital’s trading arm, Gore Street
Energy Trading (‘GSET’).
INVESTMENTS
The Company holds 100% interest in GSES 1 Limited through equity and a loan facility. Transactions and balances held with GSES 1
for the year are all detailed within note 11.
On 23 April 2024, further to the direct acquisition of the remaining 49% of both Porterstown Battery Storage Limited and Kilmannock
Battery Storage Limited on 25 March 2024, the Company transferred these new equity stakes down to GSF IRE Limited by way of an
intercompany loan through GSES 1 Limited.
22. Guarantees and Capital commitments
The Company together with its direct subsidiary, GSES1 Limited entered into Facility and Security Agreements with Santander
UK PLC in May 2021 for £15 million. The Facility was increased to £50 million in June 2023, and further increased to
£100million in November 2024. Under these agreements, the Company acts as chargor and guarantor to the amounts borrowed
under the Agreements by GSES1 Limited. As at 31 March 2025, an amount of £56,547,933 has been drawn on this facility
(2024:£5,535,292).
The Company had no contingencies and significant capital commitments as at the 31 March 2025.
23. Post balance sheet events
The Directors have evaluated the need for disclosures and / or adjustments resulting from post balance sheet events through to
16July 2025, the date the financial statements were available to be issued.
The Board approved on the 10 March 2025, the issuance of an interim dividend of 1 pence per share. This dividend totalling
£5,050,995 was paid to investors on 11 April 2025.
Post period-end, the Company has successfully entered into agreements for the sale of the Investment Tax Credits (‘ITCs’) associated
with its recently completed US assets (Dogfish and Big Rock). Together, these transactions have a combined consideration of c.$84
million net of insurance costs.
Post period-end, Santander, the lender of the £100 million Revolving Credit Facility held by the Company’s direct subsidiary GSES 1
Limited, syndicated £50 million to Rabobank, bringing another leading lender to the energy storage market into the facility.
There were no adjusting post balance sheet events and as such no adjustments have been made to the valuation of assets and
liabilities as at 31 March 2025.
Annual General Meeting – Recommendations
82
Gore Street Energy Storage Fund plc
Annual General Meeting –
Recommendations
The Annual General Meeting (“AGM”) of the Company will
be held on Thursday, 18 September 2025 at 10.00am.
Theformal Notice of Meeting is set out on page 84.
Thefollowing information is important and requires your
immediate attention. If you are in any doubt about the
action you should take, you should consult an independent
financial adviser, authorised under the Financial Services
and Markets Act 2000.
Ordinary business
Resolutions 1 to 13 are all ordinary resolutions. Resolution 1 is a
required resolution. Resolution 2 invites shareholders to approve
the Company’s dividend payment frequency policy. Resolution3
concerns the Directors’ Remuneration Report, on pages 52to53,
and Resolution 4 concerns the Directors’ Remuneration Policy, on
page 52. Resolutions 5 to 9 invite shareholders to re-elect each
of the Directors for another year, following the recommendations
of the Remuneration and Nomination Committee, set out
on page52 (their biographies are set out on pages 42 and
43). Resolutions 10 and 11 concern the re-appointment and
remuneration of the Company’s auditor, discussed in the Audit
Committee Report on pages 48 and 49.
Special business
Resolutions 12 and 13: Directors’ authority to allot shares
(ordinary resolutions)
These resolutions deal with the Directors’ authority to allot
ordinary Shares of one penny each in the capital of the Company
(“Shares”) in accordance with section 551 of the Companies Act
2006 (the “Act”).
If passed, resolution 12 will authorise the Directors to allot
Shares up to a maximum nominal amount of £505,099, which
represents approximately 10% of the Company’s issued Shares
(excluding Shares held in treasury) as at the date of this report).
If passed, resolution 13 will authorise the Directors to allot
further Shares, in addition to those which may be allotted under
resolution12, up to a maximum nominal amount of £505,099,
which represents approximately 10% of the Company’s issued
Shares (excluding Shares held in treasury) as at the date of
thisreport).
If both resolution 12 and resolution 13 are passed, authority
will be granted to the Directors to allot Shares up to a maximum
nominal amount of £1,010,198, which is a total of up to 20%
of the existing issued ordinary share capital of the Company
(excluding Shares held in treasury) as at the date of this report).
The Board recognises that this authority is beyond the standard
10% authority typically sought by investment companies, but
believes that the passing of both resolution 12 and resolution 13
is in shareholders’ interests given that:
• the authorities would provide greater flexibility to allow
the Company to take advantage of potential investment
opportunities sourced by the Company’s Investment
Manager; and
• any Shares issued under these authorities will not be issued
at prices less than the last published net asset value (“NAV”)
per Share (adjusted for dividends) at the time of issue plus a
premium to cover the costs of such issuance.
If resolution 12 is passed but resolution 13 is not passed, the
Directors will only be authorised to allot up to 10% of the existing
issued ordinary share capital of the Company. Resolution 13 is
conditional on resolution 12, so if resolution 12 is not passed
resolution 13 will not be passed either.
Each of the authorities granted pursuant to resolution 12 and 13
will expire at the conclusion of next year’s annual general meeting
(unless previously renewed, varied or revoked by the Company at
a general meeting).
The Directors have no present intention to exercise the authorities
conferred by resolution 12 and resolution 13.
Resolutions 14 and 15: power to disapply pre-emption rights
(special resolutions)
Under the Act, when new Shares are allotted or treasury
Shares are sold for cash, they must first be offered to existing
shareholders pro rata to their holdings. Each of resolutions 14
and 15 will, if passed, give the Directors power, pursuant to the
authorities to allot granted by resolutions 12 and 13 respectively,
to allot Shares or sell Shares from treasury for cash without
first offering them to existing shareholders in proportion to their
existing holdings, up to a maximum nominal amount of £505,099
which represents approximately 10% of the issued ordinary
share capital (excluding Shares held in treasury) as at the date of
this report), which in aggregate amounts to £1,010,198, which
represents approximately no more than 20% of the Company’s
issued ordinary share capital (excluding Shares held in treasury)
as at the date of this report). The powers granted by these
resolutions will expire at the conclusion of the annual general
meeting to be held in 2025 (unless previously renewed, varied or
revoked by the Company at a general meeting).
The Directors have no present intention to exercise the authorities
conferred by resolution 14 and resolution 15. Any Shares will
only be allotted or sold out of treasury without pre-emption rights
applying, at a price that is not less than the latest published NAV
(adjusted for dividends) together with an amount to cover the
costs of any such issuance.
Annual General Meeting – Recommendations
Annual Report for year ended 31 March 2025
83
Resolution 16: Authority to make market purchases of the
Company’s own shares (special resolution)
At the AGM held on 18 September 2024, the Company was
granted authority to make market purchases of up to 75,714,411
Shares for cancellation or holding in treasury. No shares have been
bought back under this authority and the Company therefore has
remaining authority to purchase up to 75,714,411 Shares. This
authority will expire at the forthcoming AGM.
This resolution seeks authority for the Company to make market
purchases of its own ordinary shares and is proposed as a
special resolution. If passed, the resolution gives authority for the
Company to purchase up to 75,714,411 of its ordinary shares,
representing 14.99% of the Company’s issued ordinary share
capital (excluding treasury shares) as at the date of this Notice of
AGM. The resolution specifies the minimum and maximum prices
which may be paid for any ordinary shares purchased under
this authority. The authority will expire at the conclusion of the
Company’s next annual general meeting. The Directors do not
currently have any intention of exercising the authority granted
by this resolution. The Directors will only exercise the authority
to purchase ordinary shares where they consider that such
purchases will be in the best interests of shareholders generally
and when they are trading at a discount to the underlying net
asset value per Share. The Company may either cancel any
Shares it purchases under this authority or transfer them into
treasury (and subsequently sell or transfer them out of treasury
or cancel them). The Company does not have any options or
outstanding share warrants.
Resolution 17: Notice period for general meetings
Resolution 17 is to be proposed as a special resolution to allow
the Company to hold general meetings (other than annual general
meetings) on at least 14 clear days’ notice. If approved, the
resolution will be effective until the end of the Company’s next
annual general meeting. The Board will consider on a case by
case basis whether the use of the flexibility offered by the shorter
notice period is merited, taking into account the circumstances,
including whether the business of the meeting is time sensitive.
Recommendations
The Board considers that the resolutions relating to the above
items of business are in the best interests of shareholders as
a whole. Accordingly, the Board unanimously recommends to
shareholders that they vote in favour of all of the resolutions to be
proposed at the forthcoming AGM, as they intend to do in respect
of their own beneficial holdings.
84
Gore Street Energy Storage Fund plc
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting
of Gore Street Energy Storage Fund plc will be held at the
offices of Stephenson Harwood LLP, 1 Finsbury Circus,
London EC2M 7SH on Thursday, 18 September 2025 at
10.00 am to consider the following resolutions of which
resolutions 1 to 13 will be proposed as ordinary resolutions
and resolutions 14 to 17 will be proposed as special
resolutions:
1. To receive the Company’s annual financial statements for the
financial period ended 31 March 2025 with the Directors’
report and auditor’s report on those financial statements.
2. To approve the Company’s policy of paying interim dividends
during the year in line with the dividend policy.
3. To approve the Directors’ Remuneration Report for the year
ended 31 March 2025.
4. To approve the Directors’ Remuneration Policy for the year
ended 31 March 2025.
5. To re-elect Patrick Cox as a Director of the Company.
6. To re-elect Caroline Banszky as a Director of the Company.
7. To re-elect Malcolm King as a Director of the Company.
8. To re-elect Thomas Murley as a Director of the Company.
9. To re-elect Lisa Scenna as a Director of the Company.
10. To appoint EY LLP as the Company’s auditor to hold office
from the conclusion of this meeting until the conclusion of the
next annual general meeting at which accounts are laid before
the Company.
11. To authorise the Directors to determine the auditor’s
remuneration.
12. That the Directors be generally and unconditionally
authorised pursuant to section 551 of the Companies Act
2006 (the “Act”) to exercise all the powers of the Company
to allot ordinary shares in the Company up to an aggregate
nominal amount of £505,099 (being 10% of the issued
ordinary share capital at the date of this Notice) for a period
expiring (unless previously renewed, varied or revoked by
the Company in general meeting) at the conclusion of the
next annual general meeting of the Company, save that the
Company may, before such expiry, make offers or agreements
which would or might require ordinary shares to be allotted
and the Directors may allot ordinary shares in pursuance of
such offer or agreement notwithstanding that the authority
conferred by this resolution has expired.
13. That, subject to the passing of resolution 12, and in addition
to the authority granted pursuant to resolution 12 above,
the Directors be generally and unconditionally authorised
pursuant to section 551 of the Act to exercise all the
powers of the Company to allot ordinary shares up to an
aggregate nominal amount of £505,099 (which represents
approximately 10% of the issued ordinary share capital at the
date of this Notice) for a period expiring (unless previously
renewed, varied or revoked by the Company in general
meeting) at the conclusion of the next annual general meeting
of the Company, save that the Company may, before such
expiry, make offers or agreements which would or might
require ordinary shares to be allotted and the Directors may
allot ordinary shares in pursuance of such offer or agreement
notwithstanding that the authority conferred by this resolution
has expired.
14. That, subject to the passing of resolution 12 above, the
Directors be and are hereby empowered, pursuant to
sections570 to 573 of the Act, to allot equity securities
(asdefined in section 560(1) of the Act) and/or sell
ordinary shares held by the Company as treasury shares
for cash as if section561(1) of the Act did not apply to any
such allotment or sale, provided that this power shall be
limited to the allotment or sale of equity securities up to an
aggregate nominal amount of £505,099 (which represents
approximately 10% of the issued ordinary share capital at
the date of this Notice); and provided that this power shall
expire at the conclusion of the next annual general meeting
of the Company, save that the Company may, at any time
prior to the expiry of such power, make an offer or enter into
an agreement which would or might require equity securities
to be allotted or sold after the expiry of such power, and the
Directors may allot or sell equity securities in pursuance of
such an offer or agreement as if such power had not expired.
15. That, subject to the passing of resolution 13 set out
above, and in addition to the authority granted pursuant
to resolution14 above, the Directors be and are hereby
empowered, pursuant to sections 570 to 573 of the Act, to
allot equity securities (as defined in section 560(1) of the Act)
and/or sell ordinary shares held by the Company as treasury
shares for cash as if Section 561(1) of the Act did not apply
to any such allotment or sale, provided that this power shall
be limited to the allotment or sale of equity securities up to
an aggregate nominal amount of £505,099 (which represents
approximately 10% of the issued ordinary share capital at
the date of this Notice); and provided that this power shall
expire at the conclusion of the next annual general meeting
of the Company save that the Company may, before such
expiry, make offers or agreements which would or might
require ordinary shares to be allotted and the Directors may
allot ordinary shares in pursuance of such offer or agreement
notwithstanding that the authority conferred by this resolution
has expired.
Notice of Annual General Meeting
Annual Report for year ended 31 March 2025
85
16. That the Company be and is hereby generally and
unconditionally authorised for the purposes of section 701
of the Act to make market purchases (within the meaning of
section 693(4) of the Act) of ordinary shares of £0.01 each in
the capital of the Company, to be cancelled or held in treasury
for potential reissue, provided that:
(a) the maximum aggregate number of ordinary shares that
may be purchased is 75,714,411;
(b) the minimum price (excluding expenses) which may be
paid for each ordinary share is £0.01;
(c) the maximum price (excluding expenses) which may
be paid for each ordinary share is an amount equal to
the higher of: (i) 105 per cent. of the average of the
mid-market value of an ordinary share in the Company
for the five business days prior to the day the purchase
is made; and (ii) the higher of: a. the price of the last
independent trade of an ordinary share; and b. the highest
current independent bid for an ordinary share; and
(d) the authority conferred by this resolution shall expire at
the conclusion of the Company’s next annual general
meeting save that the Company may, before the expiry
of the authority granted by this resolution, enter into a
contract to purchase ordinary shares which will or may
be executed wholly or partly after the expiry of such
authority.
17. That a general meeting, other than an annual general meeting,
may be called on not less than 14 clear days’ notice provided
that this authority shall expire at the conclusion of the
Company’s next annual general meeting.
By order of the Board
Registered Office: First Floor, 16-17 Little Portland Street,
London W1W 8BP
Registered Number: 11160422
16 July 2025
Notice of Annual General Meeting
86
Gore Street Energy Storage Fund plc
Explanatory Notes to the
Notice of Meeting
1. Only those shareholders registered in the Company’s register
of members at: 6.30 p.m. on 16 September 2025; or, if this
meeting is adjourned, 6.30 p.m. on the day two days before
the adjourned meeting, shall be entitled to attend, speak and
vote at the meeting. Changes to the register of members after
the relevant deadline shall be disregarded in determining the
rights of any person to attend, speak and vote at the meeting.
2. Information regarding the meeting, including the information
required by section 311A of the Companies Act, can be
found at www.gsenergystoragefund.com
3. If you wish to attend the meeting in person, please bring
your attendance card with you to the AGM. We recommend
that you arrive by 9.45 am to enable us to carry out all the
registration formalities to ensure a prompt start at 10.00 am.
If you have any special needs or require wheelchair access
to the venue, please contact the Company Secretary at
cosec@gorestreetcap.com in advance of the meeting. Mobile
phones may not be used in the meeting and cameras and
recording equipment are not allowed in the meeting.
A member entitled to attend and vote at the meeting
convened by the above Notice is entitled to appoint one
or more proxies to exercise all or any of the rights of the
member to attend and speak and vote in his/her place at
the AGM. A proxy need not be a member of the Company.
To be valid the forms of proxy, together with the power of
attorney or other authority (if any) under which it is signed
or a notarially certified or office copy of the same, must be
completed and returned in accordance with the instructions
printed thereon to the office of the Company’s Registrar or
delivered by hand (during office hours) to the same address
as soon as possible and in any event so as to arrive by not
later than 10.00 am on 16 September 2025.
4. If you are not a member of the Company but you have
been nominated by a member of the Company to enjoy
information rights, you do not have a right to appoint
any proxies under the procedures set out in note 3.
Please note11 below. You may appoint more than one
proxy provided each proxy is appointed to exercise the
rights attached to a different share or shares held by that
shareholder. To appoint more than one proxy, you may
photocopy the form of proxy enclosed with this Notice of
Annual General Meeting or alternatively, please contact
the Company’s Registrar Equiniti Limited on +44 (0) 371
384 2030 with a view to obtaining a duplicate form. You
will need to state clearly on each proxy form the number of
shares in relation to which the proxy is appointed. Failure
to specify the number of shares to which each proxy
appointment relates or specifying a number in excess
of those held by the shareholder will result in the proxy
appointment being invalid. If you wish your proxy to speak on
your behalf at the meeting you will need to appoint your own
choice of proxy (not the chairman) and give your instructions
directly to them. All forms must be signed and should be
returned together in the same envelope. Shareholders can:
Appoint a proxy or proxies and give proxy instructions by
returning the enclosed proxy form by post or, alternatively,
register their proxy appointment electronically.
5. The notes to the proxy form explain how to direct your proxy
how to vote on each resolution or withhold their vote. In the
case of a shareholder which is a company, the proxy form
must be executed under its common seal or signed on its
behalf by an officer of the company or an attorney for the
company. Any power of attorney or any other authority under
which the proxy form is signed (or a duly certified copy of
such power or authority) must be included with the proxy
form. If you have not received a proxy form and believe that
you should have one, or if you require additional proxy forms,
please contact Equiniti Limited on +44 (0) 371 384 2030.
6. It is possible for you to submit your proxy votes online by
going to Equiniti’s Shareview website, www.shareview.co.uk,
and logging in to your Shareview Portfolio. Once you have
logged in, simply click ‘View’ on the ‘My Investments’ page
and then click on the link to vote and follow the on-screen
instructions. If you have not yet registered for a Shareview
Portfolio, go to www.shareview.co.uk and enter the requested
information. It is important that you register for a Shareview
Portfolio with enough time to complete the registration and
authentication processes. For an electronic proxy appointment
to be valid, your appointment must be received by Equiniti
Limited no later than 10.00 am on 16 September 2025.
Toappoint one or more proxies or to give an instruction to
a proxy (whether previously appointed or otherwise) via the
CREST system, CREST messages must be received by the
issuer’s agent (ID Number RA19) not later than 48 hours
before the time appointed for holding the meeting. For this
purpose, the time of receipt will be taken to be the time
(as determined by the timestamp generated by the CREST
system) from which the issuer’s agent is able to retrieve the
message. The Company may treat as invalid a CREST Proxy
Instruction in the circumstances set out in regulation 35(5)(a)
of the Uncertificated Securities Regulations 2001.
If you are an institutional investor, you may be able to appoint
a proxy electronically via the Proxymity platform, a process
which has been agreed by the Company and approved by
the Registrar. For further information regarding Proxymity,
please go to www.proxymity.io. Your proxy must be lodged by
10.00 am on 16 September 2025 in order to be considered
valid. Before you can appoint a proxy via this process you
will need to have agreed to Proxymity’s associated terms
and conditions. It is important that you read these carefully
as you will be bound by them, and they will govern the
electronic appointment of your proxy.
Notice of Annual General Meeting
Annual Report for year ended 31 March 2025
87
7. In the case of joint holders, where more than one of the
joint holders completes a proxy appointment, only the
appointment submitted by the most senior holder will be
accepted. Seniority is determined by the order in which the
names of the joint holders appear in the Company’s register
of members in respect of the joint holding (the first-named
being the most senior).
8. Shareholders may change proxy instructions by submitting
a new proxy appointment using the methods set out above.
Note that the cut-off time for receipt of proxy appointments
also apply in relation to amended instructions; any amended
proxy appointment received after the relevant cut-off time
will be disregarded. Where you have appointed a proxy
using the hard-copy proxy form and would like to change
the instructions using another hard-copy proxy form,
please contact Equiniti Limited on +44 (0) 371 384 2030.
If you submit more than one valid proxy appointment, the
appointment received last before the latest time for the
receipt of proxies will take precedence.
9. Appointment of a proxy does not preclude you from
attending the meeting and voting in person. If you have
appointed a proxy and attend the AGM in person, your proxy
appointment will automatically be terminated.
10. A corporation which is a shareholder can appoint one or
more corporate representatives who may exercise, on its
behalf, all its powers as a shareholder provided that no more
than one corporate representative exercises powers over the
same share.
11. If you are a person who has been nominated under
section146 of the Companies Act to enjoy information
rights: You may have a right under an agreement between
you and the shareholder of the Company who has nominated
you to have information rights (the “Relevant shareholder”)
to be appointed or to have someone else appointed as
a proxy for the meeting. If you either do not have such a
right or if you have such a right but do not wish to exercise
it, you may have a right under an agreement between you
and the Relevant shareholder to give instructions to the
Relevant shareholder as to the exercise of voting rights. Your
main point of contact in terms of your investment in the
Company remains the Relevant shareholder (or, perhaps,
your custodian or broker) and you should continue to contact
them (and not the Company) regarding any changes or
queries relating to your personal details and your interest in
the Company (including any administrative matters).
The only exception to this is where the Company expressly
requests a response from you. The rights relating to proxies
set out above do not apply directly to nominated persons.
12. A vote withheld is not a vote in law, which means that the
vote will not be counted in the calculation of votes for or
against the resolution if no voting indication is given, your
proxy will vote or abstain from voting at his or her discretion.
Your proxy will vote (or abstain from voting) as he or she
thinks fit in relation to any other matter which is put before
the meeting.
13. As at 5 pm on 15 July 2025, which is the latest practicable
date before publication of this notice, the Company’s issued
share capital comprised 505,099,478 ordinary shares of
£0.01 each. Each ordinary share carries the right to one vote
at a general meeting of the Company and, therefore, the total
number of voting rights on that date is 505,099,478.
No shares are held in treasury. The Company’s website will
include information on the number of shares and voting
rights.
14. Any member attending the meeting has the right to ask
questions. The Company must answer any question you
ask relating to the business being dealt with at the meeting
unless: answering the question would interfere unduly with
the preparation for the meeting or involve the disclosure of
confidential information. The answer has already been given
on a website in the form of an answer to a question.
It is undesirable in the interests of the Company or the good
order of the meeting that the question be answered.
15. Under section 527 of the Companies Act, shareholders
meeting the threshold requirements set out in that section
have the right to require the Company to publish on a
website a statement setting out any matter relating to the
audit of the Company’s accounts (including the auditor’s
report and the conduct of the audit) that are to be laid
before the AGM. The Company may not require the
shareholders requesting any such website publication to
pay its expenses in complying with the request. Where the
Company is required to place a statement on a website
under section527 of the Companies Act, it must forward the
statement to the Company’s auditor not later than the time
when it makes the statement available on the website.
16. Under section 338 of the Companies Act 2006,
Shareholders meeting the threshold requirements set out in
that section, may, subject to conditions, require the Company
to give to shareholders notice of a resolution which may
properly be moved and is intended to be moved at that
meeting. The conditions are that: The resolution must not,
ifpassed, be ineffective (whether by reason of inconsistency
with any enactment or the Company’s constitution or
otherwise). The resolution must not be defamatory of any
person, frivolous or vexatious. The request: may be in hard
copy form or in electronic form; must identify the resolution
of which notice is to be given by either setting out the
resolution in full or, if supporting a resolution sent by another
shareholder, clearly identifying the resolution which is being
supported; must be authenticated by the person or persons
making it; and must be received by the Company not later
than 7 August 2025, which is at least six weeks before the
meeting.
17. Under section 338A of the Companies Act 2006,
shareholders meeting the threshold requirements set out in
that section may, subject to conditions, require the Company
to include in the business to be dealt with at the meeting
a matter (other than a proposed resolution) which may
properly be included in the business (a matter of business).
The conditions are that: The matter of business must not
Notice of Annual General Meeting
88
Gore Street Energy Storage Fund plc
be defamatory of any person, frivolous or vexatious. The
request: – may be in hard copy form or in electronic form;–
must identify the matter to be included in the business
by either setting it out in full or, if supporting a statement
sent by another shareholder, clearly identifying the matter
which is being supported; – must be accompanied by a
statement setting out the grounds for the request; – must be
authenticated by the person or persons making it; and – must
be received by the Company not later than 7 August 2025,
which is at least six weeks before the meeting.
18. Copies of the letters of appointment of the non-executive
Directors are available for inspection at the Company’s
registered office during normal business hours and at the
place of the meeting from at least 15 minutes prior to the
meeting until the end of the meeting.
19. Voting on all resolutions will be conducted by way of a poll.
As soon as practicable following the meeting, the results of
the voting will be announced via a regulatory information
service and also placed on the Company’s website.
20. Except as provided above, shareholders who have general
queries about the meeting should telephone Equiniti
Limited on +44 (0) 371 384 2030 Calls are charged at the
standard geographic rate and will vary by provider. Calls
outside the United Kingdom will be charged at the applicable
international rate. We are open between 08:30 – 17:30,
Monday to Friday excluding public holidays in England
and Wales. No other methods of communication will be
accepted. You may not use any electronic address provided
in this notice of Annual General Meeting, or in any related
documents for communicating with the Company for the
purposes other than those expressly stated.
Notice of Annual General Meeting
89
Annual Report for year ended 31 March 2025
Sustainable
investment means an
investment in an
economic activity that
contributes to an
environmental or social
objective, provided that
the investment does not
significantly harm any
environmental or social
objective and that the
investee companies
follow good governance
practices.
SFDR ANNEX IV
Periodic Disclosure for the Financial Products Referred to in
Article 8 of Regulation (EU) 2019/2088 (Annex IV)
Product name: Gore Street Energy Storage Fund PLC
Legal entity identifier: 213800GPUNVGG81G4O21
Environmental and/or social characteristics
The EU Taxonomy is a
classification system laid
down in Regulation (EU)
2020/852, establishing
a list of
environmentally
sustainable economic
activities. That
Regulation does not
include a list of socially
sustainable economic
activities. Sustainable
investments with an
environmental objective
might be aligned with
the Taxonomy or not.
Did this financial product have a sustainable investment objective?
l l
Yes l l
✖
No
It made sustainable
investments with an
environmental objective: ___ %
in economic activities that
qualify as environmentally
sustainable under the EU
Taxonomy
in economic activities that
do not qualify as
environmentally
sustainable under the EU
Taxonomy
It promoted Environmental/Social (E/S)
characteristics and while it did not have
as its objective a sustainable investment,
it had a proportion of 100 % of sustainable
investments
with an environmental objective in
economic activities that qualify as
environmentally sustainable under
the EU Taxonomy
with an environmental objective in
economic activities that do not qualify
as environmentally sustainable under
the EU Taxonomy
with a social objective
It made sustainable investments
with a social objective:
___ %
✖
It promoted E/S characteristics, but did not
make any sustainable investments
Sustainability
indicators measure how
the environmental or
social characteristics
promoted by the
financial product are
attained.
To what extent were the environmental and/or social
characteristics promoted by this financial product met?
Gore Street Energy Storage Fund, “the Company”, invests in utility-scale energy storage systems.
These assets contribute to environmental objectives and support the transition to a low-carbon
economy through:
• Enabling the integration of renewable energy sources into the power grid;
• Avoiding carbon emissions from the power sector.
SFDR ANNEX IV
90
Gore Street Energy Storage Fund plc
Principal adverse
impacts are the most
significant negative
impacts of investment
decisions on
sustainability factors
relating to
environmental, social
and employee matters,
respect for human
rights, anti-corruption
and anti-bribery matters.
The Company’s utility-scale energy storage assets enable the integration of renewable energy by
providing the grid flexibility needed to integrate intermittent energy sources such as wind and solar.
By storing excess electricity when supply exceeds demand and discharging it when required, these
assets help balance the system and avoid curtailment of renewables.
They can increase the reliability of supply during disruptions caused by extreme weather events
and help restart the system in the case of blackouts, providing a more stable energy supply.
In doing so, the use of utility-scale battery energy storage for these services reduces the need for
fossil fuel-based electricity generation and avoids emissions associated with this technology type.
Moreover, batteries provide critical ancillary services to maintain grid stability against the backdrop
of declining system inertia, a consequence of increased reliance on renewables. Compared to other
energy storage technologies, batteries have the benefit of being able to respond in short timescales
and can play a vital role in replacing conventional stabilisers, such as gas-fired power plants.
All investments made by the Company during this reporting period were in utility-scale battery
energy storage assets, supporting the effective delivery of the environmental characteristics
promoted by the product as described above.
How did the sustainability indicators perform?
• Total renewable electricity stored: 39,290 MWh
• Net CO
2
emissions avoided: 11,970 tCO
2
e
…and compared to previous periods?
Indicator FY 2023/24 FY 2024/25
Total renewable electricity stored 26,232 MWh 39,290 MWh
Net CO
2
emissions avoided* 15,178 tCO
2
e 11,970 tCO
2
e
* In FY 2024/2025, the Company adopted a new avoided emissions methodology to better reflect
the impact of utility-scale energy storage on the grid. This methodology focuses on identifying the
marginal emitter in each settlement period to determine which generation source the asset is
displacing. Further information will be provided in the Company’s FY 2024/25 ESG and
Sustainability report.
What were the objectives of the sustainable investments that the financial
product partially made and how did the sustainable investment contribute to
such objectives?
N/A. The financial product does not qualify as a sustainable investment.
How did the sustainable investments that the financial product partially made
not cause significant harm to any environmental or social sustainable
investment objective?
N/A. The financial product does not qualify as a sustainable investment.
How were the indicators for adverse impacts on sustainability factors taken into account?
N/A
Were sustainable investments aligned with the OECD Guidelines for Multinational
Enterprises and the UN Guiding Principles on Business and Human Rights? Details:
N/A
SFDR ANNEX IV
91
Annual Report for year ended 31 March 2025
How did this financial product consider principal adverse impacts
on sustainability factors?
The Company assesses and monitors the principal adverse impacts on sustainability factors
asfollows:
Greenhouse gas emissions
The Company’s investment policy excludes any investments in fossil fuels.
Biodiversity
The Investment Manager, Gore Street Investment Management (GSIM), assesses the Company’s
assets’ impact on biodiversity during the investment and construction process and takes
appropriate action to avoid or remediate impacts to ensure compliance with local planning
regulations.
Pollution and waste
The Investment Manager works closely with its partners during the construction process and over
the lifecycle of the Company’s assets to avoid pollution and waste where possible.
Human rights, social and employee matters
The Company supports the UN Global Compact Principles and OECD Guidelines for Multinational
Enterprises and does not tolerate any form of forced labour, child labour or severe human rights
abuses in its supply chains. As part of the due diligence process, suppliers operating in ‘high risk’
sectors are required to provide details of their supply chain management approach and to confirm,
on an annual basis, compliance with the principles outlined in the Investment Manager’s supplier
code of conduct. The Investment Manager also has processes in place to ensure health & safety
standards are met on-site.
Monitoring of PAIs
Although the Company anticipates fully monitoring and reporting on all relevant principal adverse
impacts, data may not be fully, or in part, available on one or more of the Company’s investments.
In instances where data is not fully available, the Investment Manager may make reasonable
estimates as to the impact or rely on third party providers’ data to do so. In situations where
appropriate data is unavailable, either fully or in part, and where the Investment Manager uses
estimates, it will explain in the Company’s ESG & Sustainability reporting the rationale for such
estimation.
The table below summarises the Company’s performance as reported against the Principal Adverse
Impact (PAI) mandatory and additional sustainability disclosures. The assessment included all
assets in operation and under construction held by investee companies of the Company during the
period of 1 April 2024 – 31 March 2025.
SFDR ANNEX IV
The EU Taxonomy sets out a “do not significant harm” principle by which Taxonomy-aligned
investments should not significantly harm EU Taxonomy objectives and is accompanied by
specific Union criteria.
The “do no significant harm” principle applies only to those investments underlying the
financial product that take into account the EU criteria for environmentally sustainable
economic activities. The investments underlying the remaining portion of this financial product
do not take into account the EU criteria for environmentally sustainable economic activities.
Any other sustainable investments must also not significantly harm any environmental or
social objectives.
92
Gore Street Energy Storage Fund plc
Topic # Indicators Performance
April 2024 – March 2025
1
Methodology
2
SFDR mandatory disclosures: Due diligence on Principal Adverse Impacts (PAI)
Climate and other environment-related indicators
Greenhouse gas emissions 1 Total greenhouse gas (GHG) emissions (Scope 1,
2 and 3)
50,495 tCO
2
e Framework by the
Greenhouse Gas Protocol
2 Carbon footprint 102.27 tCO
2
e / £M Formula prescribed by
SFDR
3 GHG intensity of investee companies 431.02 tCO
2
e / £M Formula prescribed by
SFDR
4 Exposure to companies active in the fossil fuel
sector
No exposure Review of relevant
documentation
5 Share of non-renewable energy consumption and
production
33% Based on asset activity
data, grid mix data
6 Energy consumption intensity per high impact
climate sector
0.30 GWh / £M Based on energy
consumption, financial data
Biodiversity 7 Activities negatively affecting biodiversity-
sensitive areas
None identified Review of relevant
documentation
Emissions to water 8 Emissions to water 0t / £M Review of site activities
Waste 9 Hazardous waste ratio 0.005 t / £M Review of site activities
Social and employee matters
UNGC principles or OECD
Guidelines for Multinational
Enterprises
10 Violations of principles/guidelines None identified Review of relevant
documentation
11 Lack of processes and mechanisms to monitor
compliance
No formal processes or
mechanisms (100%)
Review of relevant
documentation
Gender equality 12 Unadjusted gender pay gap N/A N/A
Gender diversity 13 Board gender diversity 23% (weighted average
ratio of female to male
board members at investee
company level expressed
as a percentage of all board
members)
Based on board
composition, financial data
Controversial weapons 14 Exposure to controversial weapons (anti-
personnel mines, cluster munitions, chemical and
biological weapons)
No exposure Review of relevant
documentation
Additional sustainability disclosures
Air emissions 15 Emissions of air pollutants None reported Review of site activities
Additional water and waste,
and material emissions
16 Water usage and recycling 0.003m
3
/ £M Review of site activities
17 Non-recycled waste ratio 0.85 t / £M Review of site activities
Human rights 18 Operations and suppliers at significant risk of
incidents of child labour
0% Review of relevant
documentation
19 Operations and suppliers at significant risk of
incidents of forced or compulsory labour
0% Review of relevant
documentation
20 Number of identified cases of severe human
rights issues and incidents
None identified Review of relevant
documentation
Sustainability indicators 21 Net CO
2
emissions avoided 11,970 tCO
2
e Based on battery charging
data, grid carbon emissions
factors
22 Total renewable electricity stored 39,290 MWh Based on import energy
data, grid mix data
SFDR ANNEX IV
1 All figures have been provided in EUR in addition to GBP for each appropriate PAI below
2 Formulas from the Jan. 2023 Joint Consultation Paper on PAI disclosures have been factored into each PAI
93
Annual Report for year ended 31 March 2025
Asset allocation
describes the share of
investments in specific
assets.
What were the top investments of this financial product?
Largest
investments*
Sector % of assets Country/region
Infrastructure project 1 Energy 35 United States
Infrastructure project 2 Energy 12 Great Britain
Infrastructure project 3 Energy 10 United States
*Further information is available upon request.
What was the proportion of sustainability-related investments?
100% of the investments held by the Company promoted E/S characteristics. The financial product
does not have a sustainable investment objective.
#1 Aligned with E/S characteristics includes the investments of the financial product used
to attain the environmental or social characteristics promoted by the financial product.
Investments
#1 Aligned with E/S characteristics
The list includes the
investments constituting
the greatest
proportion of
investments of the
financial product during
the reference period
which is: April 2024 –
March 2025
SFDR ANNEX IV
94
Gore Street Energy Storage Fund plc
Taxonomy-aligned
activities are expressed
as a share of:
- turnover reflecting
the share of revenue
from green activities
of investee
companies.
- capital expenditure
(CapEx) showing the
green investments
made by investee
companies, e.g. for a
transition to a green
economy.
- operational
expenditure (OpEx)
reflecting green
operational activities
of investee
companies.
What was the asset allocation?
• Investments: 100% of the investments were allocated to battery energy storage
systems and used to meet the environmental characteristics promoted by the
Company.
In which economic sectors were the investments made?
All investments were made in the energy sector, specifically the battery energy storage
sub-sector.
No investments were made in sectors or sub-sectors of the economy that derive revenue
from exploration, mining, extraction, production, processing, storage, refining or
distribution, including transportation, storage and trade, of fossil fuels as defined in
Article 2, point (62), of Regulation (EU) 2018/1999 of the European Parliament and of the
Council.
To what extent were the sustainable investments with an
environmental objective aligned with the EU Taxonomy?
N/A. The financial product does not qualify as a sustainable investment.
Did the financial product invest in fossil gas and/or nuclear energy
related activities complying with the EU Taxonomy
3
?
Yes:
In fossil gas In nuclear energy
X
No
The graphs below show in green the percentage of investments that were aligned with
the EU Taxonomy. As there is no appropriate methodology to determine the taxonomy-
alignment of sovereign bonds*, the first graph shows the Taxonomy alignment in
relation to all the investments of the financial product including sovereign bonds, while
the second graph shows the Taxonomy alignment only in relation to the investments of
the financial product other than sovereign bonds.
3 Fossil gas and/or nuclear related activities will only comply with the EU Taxonomy where they contribute to limiting climate
change (“climate change mitigation”) and do not significantly harm any EU Taxonomy objective - see explanatory note in the left
hand margin. The full criteria for fossil gas and nuclear energy economic activities that comply with the EU Taxonomy are laid
down in Commission Delegated Regulation (EU) 2022/1214.
To comply with the EU
Taxonomy, the criteria
for fossil gas include
limitations on emissions
and switching to fully
renewable power or
low-carbon fuels by the
end of 2035. For
nuclear energy, the
criteria include
comprehensive safety
and waste management
rules.
Enabling activities
directly enable other
activities to make a
substantial contribution
to an environmental
objective.
Transitional activities
are activities for which
low-carbon alternatives
are not yet available and
among others have
greenhouse gas
emission levels
corresponding to the
best performance.
SFDR ANNEX IV
95
Annual Report for year ended 31 March 2025
are sustainable
investments with
an environmental
objective that do not
take into account the
criteria for
environmentally
sustainable economic
activities under
Regulation (EU)
2020/852.
* For the purpose of these graphs, ‘sovereign bonds’ consist of all sovereign exposures
OpEx
CapEx
Turnover
0% 50% 100%
1. Taxonomy-alignment of investments
including sovereign bonds*
Non Taxonomy-aligned
OpEx
CapEx
Turnover
0% 50% 100%
2. Taxonomy-alignment of investments
excluding sovereign bonds*
Non Taxonomy-aligned
What was the share of investments made in transitional
and enabling activities?
N/A.
How did the percentage of investments that were aligned
with the EU Taxonomy compare with previous reference
periods?
N/A.
What was the share of sustainable investments with an
environmental objective not aligned with the EU Taxonomy?
N/A.
What was the share of socially sustainable investments?
N/A.
What investments were included under “other”, what was
their purpose and were there any minimum environmental
or social safeguards?
N/A. All investments were allocated to battery energy storage systems.
SFDR ANNEX IV
96
Gore Street Energy Storage Fund plc
What actions have been taken to meet the environmental and/or
social characteristics during the reference period?
The Company typically seeks legal and operational control of the energy storage projects it
acquires. The Company’s Investment Manager actively manages all “investee companies” (SPVs)
within the Company’s portfolio and has integrated the Company’s sustainability objectives into its
acquisition, construction, and operations model.
During the reporting period, the Company’s portfolio continued to support the global energy
transition by increasing its energised capacity by 79% from 421.4 MW to 753.4 MW.
Additionally, the Investment Manager managed the operational assets on behalf of the Company to
ensure they remain functional and continue to provide a range of services to the grid, achieving
over 95% availability over the reporting period. These services enable a higher penetration of
renewable energy sources and help to balance demand and supply, thereby avoiding carbon
emissions from fossil fuel-fired peaker plants.
How did this financial product perform compared to the reference
benchmark?
N/A. Due to the bespoke nature of the Company’s activities, this financial product does not have a
designated reference benchmark for sustainability performance. As an actively managed fund
investing in utility-scale energy storage infrastructure, the Company’s strategy does not seek to
replicate or track any external index. Instead, sustainability performance is measured using
internally defined environmental indicators, including renewable electricity stored and net CO₂
emissions avoided, which reflect the Company’s specific environmental characteristics and impact.
How does the reference benchmark differ from a broad market index?
N/A.
How did this financial product perform with regard to the sustainability
indicators to determine the alignment of the reference benchmark with the
environmental or social characteristics promoted?
N/A.
How did this financial product perform compared with the reference
benchmark?
N/A.
How did this financial product perform compared with the broad market index?
N/A.
?
Reference benchmarks
are indexes to measure
whether the financial
product attains the
environmental or social
characteristics that they
promote.
SFDR ANNEX IV
97
Annual Report for year ended 31 March 2025
1. NAV TOTAL RETURN FOR THE YEAR INCLUDING DIVIDEND REINVESTMENT
A measure of NAV performance for the financial year, considering both capital returns and dividends paid to shareholders. This factors
in return on reinvestment of dividends.
31 March
2025
31 March
2024
NAV per ordinary share at end of the year
102.81p 107.05p
Dividends paid during the year
5.50p 7.50p
Dividend re-investment impact
-0.06p -0.44p
NAV per ordinary share at end of the year including dividend reinvestment
108.25p 114.11p
NAV per ordinary share at beginning of the year
107.05p 115.55p
NAV total return for the year
1.20p -1.44p
NAV per ordinary share total return for the year
1.1% -1.2%
2. NAV TOTAL RETURN SINCE IPO INCLUDING DIVIDEND REINVESTMENT
A measure of NAV performance since IPO, considering both capital returns and dividends paid to shareholders during the period. This
factors in return on reinvestment of dividends.
31 March
2025
31 March
2024
NAV per ordinary share at end of year
102.81p 107.05p
Dividends paid since inception
42.00p 36.50p
Dividend re-investment impact
-0.22p 1.40p
NAV per ordinary share at end of year including dividend reinvestment
144.59p 144.95p
NAV per ordinary share at IPO
97.67p 97.67p
NAV total return since IPO
46.92p 47.28p
NAV per ordinary share total return since IPO
48.0% 48.4%
3. SHARE PRICE TOTAL RETURN FOR THE YEAR INCLUDING DIVIDEND REINVESTMENT
A measure of return to a shareholder holding a share for the financial year. Dividends per share reflect dividends declared during the
period with Ex-dividend date prior to year end. This factors in return on assumed reinvestment of dividends at Ex-dividend date based
on the spot share price at Ex-dividend date.
31 March
2025
31 March
2024
Share price per ordinary share at end of the year
58.20p 64.50p
Dividends per share declared during the year
4.50p 7.50p
Dividend re-investment impact
0.15p -1.41p
Share price per ordinary share at end of the year including dividend reinvestment
62.85p 70.59p
Share price per ordinary share at beginning of year
64.50p 100.80p
Share price total return for the year
-1.65p -30.21p
Share price per ordinary share total return for the year
-2.6% -30.0%
Alternative Performance Measures
Alternative Performance Measures and Glossary
98
Gore Street Energy Storage Fund plc
4. SHARE PRICE TOTAL RETURN SINCE IPO INCLUDING DIVIDEND REINVESTMENT
A measure of return to a shareholder holding a share since IPO. Dividends per share reflect dividends declared during the period with
Ex-dividend date prior to year end. This factors in return on assumed reinvestment of dividends.
31 March
2025
31 March
2024
Share price at end of the period
58.20p 64.50p
Dividends per share since inception
43.00p 38.50p
Dividend re-investment impact
-15.49p -13.17p
Share price per ordinary share at end of the year including dividend reinvestment
85.71p 89.83p
Share price per ordinary share at IPO
100.00p 100.00p
Share price total returns since IPO
-14.29p -10.17p
Share price per ordinary share total return since IPO
-14.3% -10.2%
5. SHARE DISCOUNT
31 March
2025
31 March
2024
Share price at year end
58.20p 64.50p
NAV per ordinary share at year end
102.81p 107.05p
Discount to NAV
-44.61 -42.55
Discount to NAV %
-43.4% -39.7%
6. OPERATIONAL EBITDA FOR THE YEAR
A measure of aggregate EBITDA from the operational portfolio companies during the year, providing a proxy for operational cash
generation from operational projects.
31 March
2025
31 March
2024
Operational portfolio company revenue
£35.3m £41.41m
Operating & admin costs of operational portfolio company
-£14.28m -£13.01m
Operational EBITDA for the year
£21.0m £28.4m
7. OPERATIONAL DIVIDEND COVER FOR THE YEAR
A measure to demonstrate the Company’s ability to pay dividends to shareholders from the earnings generated by underlying
operational investments.
31 March
2025
31 March
2024
Operational EBITDA
£21.01m £28.41m
Dividend paid during the year (£)
£27.59m £36.38m
Operational dividend cover
0.76x 0.78x
Alternative Performance Measures and Glossary
99
Annual Report for year ended 31 March 2025
8. TOTAL FUND DIVIDEND COVER FOR THE YEAR
A measure to demonstrate the Company’s ability to pay dividends to shareholders from the earnings generated by underlying
operational investments after accounting for expenses of the Company and its underlying intermediate holding companies, external
interest costs and facility commitment fees.
31 March
2025
31 March
2024
Operational project EBITDA
£21.01m £28.41m
Costs of the Company and intermediate holding companies
-£9.36m -£10.21m
Bank interest income in the Company
£0.88m £3.15m
Facility arrangement & extension fee in GSES1
-£0.85m -£0.43m
Facility commitment fees in GSES 1
-£0.51m -£0.62m
External interest costs in GSES 1
-£2.44m -£0.07m
Total Fund earnings
£8.72m £20.24m
Dividend paid during the year
£27.59m £36.38m
Total Fund dividend cover
0.32x 0.56x
Total Fund earnings
£8.72m £20.24m
One off transaction costs and debt arrangement costs
£1.96m £1.45m
Total Fund earnings excluding one off costs
£10.68m £21.68m
Dividend cover
0.39x 0.60x
9. DIVIDEND YIELD
31 March
2025
31 March
2024
Dividends per share paid during the year
5.5p 7.5p
Share price at year end
58.2p 64.5p
Dividend yield
9.5% 11.6%
10. ONGOING CHARGES FIGURE
A measure, expressed as a percentage of average net assets, of the regular, recurring annual costs of running the Company. This has
been calculated and disclosed in accordance with the AIC methodology.
31 March
2025
31 March
2024
Total administrative and other expenses
£7.18m £7.93m
Performance fee and non-recurring expenses
-£0.05m -£0.16m
Total ongoing expenses
£7.13m £7.77m
Average NAV for the year
£515.65m £548.04m
Ongoing charges figure
1.38% 1.42%
11. GEARING
31 March
2025
31 March
2024
Net asset value of the Company
£519.29m £540.70m
Aggregate group debt (A)
£112.57m £37.41m
Gross asset value (B)
£631.86m £578.11m
Gearing (A/B)
17.8% 6.5%
Alternative Performance Measures and Glossary
100
Gore Street Energy Storage Fund plc
• 50Hertz: One of the four transmission system operators
in Germany responsible for operating and managing the
electricity grid.
• Ancillary services: Support services necessary for maintaining
the stability, reliability, and quality of electricity supply. These
services encompass activities such as frequency regulation,
voltage control, reactive power support, and black start
capability.
• Automatic Frequency Restoration Reserve (aFFR): This
service is designed to support FCR should it fail to deliver
the flexibility needed to maintain the grid by maintaining
a reserve in the power grid that helps to keep the grid
frequency stable.
• Balancing Mechanism: A market mechanism enabling grid
operators to balance electricity supply and demand in real-
time, ensuring system stability and reliability.
• CAISO: California Independent System Operator. It functions
as the ISO for the majority of California’s electric grid,
overseeing the transmission and distribution of electricity
within the state.
• California Public Utilities Commission (CPUC): A regulatory
agency that regulates privately owned public utilities in
California.
• Capacity Market: A market mechanism designed to ensure
sufficient electricity generation capacity is available to meet
the demand. Generators are compensated for their capacity
to be available rather than solely for the electricity they
generate.
• Commercial Manager: Gore Street Operational Management
Limited.
• Commercial Operations Date (COD): The official date when
an energy storage system begins its commercial operations
and starts consuming and supplying electricity to the grid.
• Contingency Reserve Service (ECRS): An ancillary service to
ensure the availability of reserves in case of contingencies or
emergencies, thereby assisting in maintaining grid stability.
• Discounted Cash Flow (DCF): A financial valuation method.
• DS3: Delivering a Secure, Sustainable Electricity System. The
program implemented by both Transmission System Operator
(TSO) for the single Irish grid with the aim of increasing the
renewable penetration level in a safe and secure manner.
• D-suite: A term collectively referring to Dynamic Regulation
(DR), Dynamic Containment (DC), and Dynamic Moderation
(DM) services.
• Dynamic Containment (DC): A service offered by electricity grid
operators to address sudden imbalances in supply and demand,
usually in response to significant disturbances or faults.
• Dynamic Moderation (DM): A service provided by electricity
grid operators to manage smaller imbalances in supply
and demand, often in response to minor fluctuations or
disturbances.
• Dynamic Regulation (DR): A real-time service to actively
manage and regulate grid frequency, ensuring a stable and
balanced power system.
• EirGrid: The TSO in Republic of Ireland. Responsible for the
operation and management of the electricity transmission
system in the Republic of Ireland as part of the All-Ireland
power system.
• Enduring Auction Capability platform (EAC): A platform
provided by the National Grid, the ESO in GB, that enables
market participants to bid on opportunities to deliver multiple
frequency response services simultaneously.
• Energisation: The process of supplying electricity to an energy
storage system after construction.
• Electricity Forward Agreement (EFA): Refers to load profiles
when trading on an electricity market.
• EPC: Engineering, Procurement, and Construction. Refers
to a project delivery approach in which a single entity (EPC
contractor) is responsible for the design, procurement, and
construction of a project, providing a comprehensive and
integrated solution.
• ERCOT: Electric Reliability Council of Texas. It serves as the
independent system operator (ISO) for the electric grid in
Texas, responsible for ensuring the flow of electricity and
maintaining grid reliability.
• Fast/Firm Frequency Response (FFR): A rapid and automated
response to changes in grid frequency, aiding in the
stabilisation of the grid within milliseconds or seconds.
• Frequency Control Reserve (FCR): A mechanism to regulate
and control grid frequency within an acceptable range.
• Investment Manager: Gore Street Capital Limited.
• ISO: ISO stands for Independent System Operator an entity
responsible for the operation of a power grid or electrical
transmission system.
• Manager: Refers to both the Investment Manager and the
Commercial Manager.
• Mega Watt (MW): Refers to a unit of power equal to one
million watts. It is used to describe the output of electricity.
• Mega Watt Hour (MWh): Refers to a unit of energy. It
represents the amount of energy generated or consumed over
one hour at a rate of one megawatt.
• National Grid ESO: National Grid Electricity System Operator.
It is responsible for the operation and management of the
electricity transmission system in Great Britain.
Glossary
Alternative Performance Measures and Glossary
101
Annual Report for year ended 31 March 2025
• O&M: Operations and Maintenance. Refers to the activities
and tasks involved in operating and maintaining an
operational energy storage system.
• Regulation Up: A grid balancing mechanism used during
periods when frequency drops, a battery can either discharge
or reduce its charging schedule in order to provide this
service.
• Regulation Down: A grid balancing mechanism used during
periods when frequency rises, a battery can either charge or
increase its charging schedule in order to provide this service.
• Responsive Reserve Service (RRS): This is a type of Ancillary
Service that ERCOT procures to arrest frequency deviations
in the grid. RRS can be further split into Primary Frequency
Response, Under Frequency Response, and Fast Frequency
Response.
• Soni: Is the TSO for Northern Ireland. Responsible for the
operation and management of the electricity transmission
system in Northern Ireland as part of the All-Ireland power
system.
• System Non-Synchronous Penetration (SNSP): Is an
expression of the level of non-synchronous generation (e.g.
solar/wind) and interconnector imports compared to the
system demand and interconnector exports.
• TNUoS: Transmission Network Use of System charges. These
charges are imposed on users of the electricity transmission
system for accessing and utilising the transmission
infrastructure.
Alternative Performance Measures and Glossary
Gore Street Energy Storage Fund plc (“GSF” or “the Company”)
is London’s first listed energy storage fund, launched in 2018.
The Company is the only UK-listed energy storage fund with a
diversified portfolio across five grid networks.
Energy storage technologies can enhance power system stability and flexibility and
are key tools for balancing out variability in renewable energy generation, facilitating
the integration of more renewable energy supply into power grids. In this way,
energy storage is critical to the renewable and low carbon energy transition.
Investment Objective
The Company aims to provide investors with a sustainable dividend, generated
from long-term investment in a diversified portfolio of utility-scale energy storage
assets. In addition, the Company seeks to provide investors with capital growth,
in accordance with the Company’s investment policy. The Company’s investment
policy is available on its website.
Sustainability
The Company uses various frameworks to report on its environmental, social,
and governance (ESG) performance. During the reporting period, the Company
published the ESG & Sustainability Report 2024, which outlines its approach
to sustainability and integration of ESG principles into its business operations.
The report provides information on the Company’s management of climate-
related risks, following recommendations by the Task Force on Climate-Related
Financial Disclosures (TCFD). The Company is also a signatory of the Principles
for Responsible Investment (PRI) and complies with the Sustainable Finance
Disclosure Regulation (SFDR).
About Us
Strategic Report
1 Key Metrics
2 Chair’s Statement
6 Investment Manager’s Report
29 Strategic Report
Governance
42 The Board of Directors
44 Directors’ Report
48 Audit Committee Report
50 Management Engagement
Committee Report
51 Remuneration and Nomination
Committee Report
52 Directors’ Remuneration Report
54 Statement of Directors’
Responsibilities in respect of the
preparation of the Annual Financial
Report
Financial Statements
56 Independent Auditor’s Report
61 Statement of Comprehensive
Income
62 Statement of Financial Position
63 Statement of Changes in Equity
65 Statement of Cash Flows
66 Notes to the Financial Statements
Annual General Meeting
82 Annual General Meeting –
Recommendations
84 Notice of Annual General Meeting
86 Explanatory Notes to the Notice of
Meeting
Additional Information
89 SFDR Annex IV
97 Alternative Performance Measures
and Glossary
Inside back Shareholder
cover Information
Back cover Directors and Advisors
Contents
Shareholder Information
Webpage
The Company’s website has copies of all Company
documents, as well as links to the Company’s Regulated
Information Service announcements.
Association of Investment Companies
The Company is a member of the Association of Investment
Companies: www.theaic.co.uk.
Alternative Investment Fund Managers
Directors (“AIFMD”) disclosures
The Company is required to make certain disclosures to
comply with the FCA Handbook and other regulations.
These are included in this report or are made available on
the Company’s website.
Annual Board Engagement Schedule
In addition to the events below, Shareholders may contact
the Chair via the Company’s registered office or reach out
via the investor relations team at ir@gorestreetcap.com.
17 July 2025 (9.30 am) Post-Annual Report Analyst
webinar
17 July 2025 (11.00 am) Post-Annual Report Retail
Shareholder webinar
18 September 2025 AGM
December 2025 Post-Interim Report Analyst
webinar
December 2025 Post-Interim Report Retail
Shareholder webinar
Spring 2026 Board engagement with
institutional shareholders
Leverage
The Company’s leverage exposures as at 31 March 2025
were:
Gross method: 98.24%
Commitment method: 98.28%
Dividends
Dividends are paid quarterly, usually in January, April, July
and October.
Share liquidity
Average weekly share volumes for the twelve months ended
31 March 2025 was 6,577,864.
Directors and Advisors
Directors
Pat Cox – Chair
Caroline Banszky
Max King
Tom Murley
Lisa Scenna
Registered office
First Floor
16-17 Little Portland Street
London W1W 8BP
AIFM and Investment
Manager
Gore Street Investment
Management Limited
16-17 Little Portland Street
London W1W 8BP
Joint Corporate Broker
J.P. Morgan Cazenove
Floor 29
25, Bank Street
London E14 5JP
Administrator
Apex Fiduciary Services (UK) Limited
4th Floor
140 Aldersgate Street
London EC1A 4HY
Company Secretary
Gore Street Services Limited
First Floor
16-17 Little Portland Street
London W1W 8BP
Registrar and Receiving
Agent
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Joint Corporate Broker
Shore Capital Stockbrokers Limited
Cassini House
57 St James Street
London SW1A 1LD
Depositary
INDOS Financial Limited
The Scalpel, 18th Floor
52 Lime Street
London EC3M 7AF
Independent Valuer
BDO LLP
55 Baker Street
London W1U 7EU
Independent Auditor
Ernst & Young LLP
25 Churchill Place
Canary Wharf
London E14 5EY
Legal Advisor
Stephenson Harwood LLP
1 Finsbury Circus
London EC2M 7SH
Dealing Codes
ISIN: GB00BG0P0V73
SEDOL: BG0P0V7
Ticker: GSF
Global Intermediary
Identification Number
(GIIN)
ZAX2MB.99999.SL.826
Legal Entity Identifier (LEI )
213800GPUNVGG81G4O21
www.gsenergystoragefund.com
The paper stock used in this report
is manufactured at a mill that is FSC
accredited. The manufacture of the paper in
this report has been Carbon Balanced. The
print factory is FSC accredited and has the
Environmental ISO 14001 accreditation.
CBP029867
Gore Street Energy Storage Fund plc Annual Report for the year ended 31 March 2025
Annual Report of
Gore Street Energy
Storage Fund plc
For the year ended 31 March 2025