Gore Street Energy Storage Fund reports lower NAV as strategy shifts to asset sales and upgrades

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Gore Street NAV and strategy

Highlights

Gore Street Energy Storage Fund's audited NAV dropped to 74.9 pence per share (£378.3 million) at 31 March 2026, down from 102.8 pence (£519.3 million) a year earlier due to forecasted lower merchant revenues.
Operational capacity rose to 643.11 MW and 840.9 MWh with revenue increasing to £36.27 million, but average revenue per MW/hr declined to £7.32 from £9.56 year-on-year.
A revised strategy emphasizes a fixed 7 pence per share annual dividend, selective asset sales like Cremzow (22 MW), reinvestment in upgrades, and continued cost reductions.

Full-year results and portfolio performance

As reported by London Stock Exchange, citing the Regulatory News Service, Gore Street Energy Storage Fund plc says audited full-year results show net asset value fell to 74.9 pence per share at 31 March 2026, from 102.8 pence a year earlier and 87.9 pence at 31 December 2025. The company says NAV declined to £378.3 million from £519.3 million at 31 March 2025, primarily because independent third-party forecasts pointed to lower merchant revenues.

Revenue for the year rises to £36.27 million from £32.84 million, even as average revenue slips to £7.32 per MW/hr from £9.56 per MW/hr. Operational capacity increases to 643.11 MW and 840.9 MWh at period-end, from 417.11 MW and 386.75 MWh a year earlier, while average operational capacity for the financial year reaches 565.78 MW and 696.70 MWh.

The company says construction at the 57 MW / 57 MWh Enderby asset has been completed, but grid connection constraints are delaying access to some revenue streams. Across the portfolio, Gore Street holds 28 assets in five grids with total capacity of 1.16 GW, and declares dividends of 7.19 pence per share for the period, compared with 4.00 pence a year earlier.

Strategy execution and market implications

Chair Angus Gordon Lennox says battery energy storage remains critical as renewable power growth and energy independence needs continue to expand. He says operational progress during the period, including a significant increase in running capacity, helps lift revenue despite weaker market pricing per MW.

Following the board refresh completed on 1 February 2026, the company says its revised strategy rests on four elements, a higher fixed annual distribution of 7 pence per share, selective asset sales, reinvestment into augmentation and other value-adding development, and cost reductions. Sales processes are continuing, with the Cremzow asset in Germany, with 22 MW of capacity, in late-stage negotiations and further updates expected later in summer 2026.

Augmentation works at the Stony and Ferrymuir assets in Great Britain are continuing on time and on budget, increasing duration from one hour to two hours and potentially lifting revenue-earning capacity. The company also says its operational fleet avoids 15,142 tCO2e and stores 56,975 MWh of renewable electricity, underlining the role battery storage plays in reducing dependence on gas and coal generation.

Our earlier coverage of political pressure on UK pension funds outlined how ministers want retirement savings to be directed more toward domestic investment, with the option of compulsion if voluntary steps fall short. We noted the potential upside for UK funding conditions, alongside concerns about fund independence and fiduciary duties.

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