Edison Releases Report on Gresham House Energy Storage Fund

Edison Investment Research has published a report on the Gresham House Energy Storage Fund (GRID), highlighting positive developments in the second half of 2024. The fund detailed its expanding capacity and increasing revenues during a recent capital markets day. Notably, GRID unveiled a three-year growth plan to triple its earnings from £45–55 million in 2025 to £150 million by 2027. This growth is expected to be funded through a new project finance style arrangement.

Subject to successful refinancing, anticipated in the first quarter of 2025, GRID plans to reinstate fully covered dividend payments by the third quarter of 2025. Additionally, the fund is negotiating an equity investment in one of its sites. This investment could validate GRID’s valuation approach and reassure investors regarding its net asset value (NAV).

Currently, GRID’s shares are trading at a historically wide discount to NAV, but the report suggests this could narrow significantly as the company's plans take effect. This is based on recent positive developments and growth strategies aiming to enhance capacity and revenues.