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Edison Investment Research Limited
Gresham House Energy Storage Fund (GRID): Initiation - A rapidly growing fund with scope for NAV uplifts
Gresham House Energy Storage Fund (GRID) invests in a diversified portfolio of utility-scale battery energy storage systems (BESS) in the UK and Ireland. It is the largest UK listed BESS fund and the largest operator in the market, and it is growing rapidly. GRID owns 17 operational projects with capacity totalling 425MW, which have delivered a good performance since inception. It also has eight projects (comprising a further 415MW) under construction and due to begin operating in 2022, and expects total capacity to exceed 1,500MW by 2024. BESS are a key part of the UK's commitment to reach net zero carbon emissions by 2050. Demand for these units is projected to rise from 1.4GW today to an estimated 42GW by 2050, according to National Grid. We believe GRID's asset valuation policy is conservative relative to its peers, providing scope for potential NAV uplift. GRID's manager, Ben Guest, has the funding to deliver the current pipeline and in our view, it is possible that GRID may raise further funds in 2022 to drive growth in 2023 and beyond. The fund has a high dividend policy, currently paying a dividend of 7.0p per share. GRID's share price has traded at a premium to cum-income NAV since inception, thanks to strong investor demand for exposure to this asset class, the attractive, regular dividend, healthy dividend cover and the possibility of NAV uplifts, given GRID's conservative valuation policy. However, in the absence of further share price rises, the premium may narrow as and when any such uplifts are realised. to view the full report or to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the . Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: James Magness +44 (0)20 3077 5700 Learn more at and connect with Edison on: YouTube
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1281219 17-Feb-2022
