Energy storage owner Gore Street has announced that it is now participating in the National Grid’s new Dynamic Containment Service. Most of the group’s operational portfolio, which is ten operating battery assets in England and Wales totalling over 90MW, will be participating from 1 April.
Dynamic Containment is a fast response service that helps to manage grid frequency at timescales of under a second.
In January 2021 National Grid permitted stacking of Dynamic Containment services with Balancing Mechanism participation. Since October 2020, Dynamic Containment has paid an average of £17.0MW/hr, well above the recent average Fast Frequency Response prices, of £6.5MW/hr over the same period.
If this pricing trend continues, this new service could provide Gore Street with a significant uplift in revenue across over 90MW of operational assets in GB. This new revenue stream operates alongside fast frequency revenue streams and the Company believes that current Dynamic Containment prices may result in a material uplift in the Company’s revenue for the current calendar year[1].
Alex O’Cinneide, chief executive of Gore Street Capital, the Company’s investment manager commented:“Gore Street is excited to take part in this service which reinforces the benefits of our revenue stacking model, enabling our assets to participate in multiple contracts to generate significant value. We look forward to potentially adding further assets to the service over time and as leading experts in the sector, will continually seek further revenue streams to add accretive value for our shareholders.”
The fund also recently acquired a 49.9MW project to be built at Ferrymuir in Scotland.
Further reading
Act now: ten days to respond to NGESO on frequency control options after 2019 blackout
Arenko takes on ‘route to market’ role for Gore Street battery, says it has 100MW pipeline