The world of energy is changing and new records keep being set. Britain generated more electricity from renewables and nuclear power last year than from gas and coal, the first time lower-carbon resources met most of the UK’s power needs. The German and Dutch governments last year held offshore wind auctions that were subsidy free. Infrastructure funds have long been backers of renewable energy projects but the number of publicly listed green investment vehicles is growing. Investors traditionally buy in for the long-term yield. Gore Street Capital, a private equity group, is launching the world’s first listed energy storage fund. The Gore Street Energy Storage Fund wants to raise £100m to invest in large-scale battery projects. Two strategic investors are committing £14m, Japan’s NEC and Nippon Koei, an engineering company. Battery storage is a growing market. As the amount of intermittent renewables increases and baseload power from coal declines, the demand for utility-scale batteries to help balance supply and demand will increase. The fund will target a dividend yield of 7 per cent and will be following in the footsteps of some other interesting green investment groups.
FT 16th March 2018 read more »