LONDON - Gore Street Energy Storage Fund plc, an international energy storage investor, has secured a Resource Adequacy (RA) contract with J. Aron & Company LLC, a Goldman Sachs subsidiary. The contract, associated with its California-based Big Rock energy storage asset, is set to generate over $14 million annually, starting in the summer of 2025.
Under the RA program, entities in California are obliged to procure sufficient generation capacity to meet peak demand forecasts and maintain a reserve margin, incorporating energy storage to bolster flexibility and reliability in the power supply. Big Rock, a 200 MW asset in Gore Street's portfolio, is poised to provide 100 MW of deliverability for a minimum of four hours under this contract.
The RA contract is a cornerstone of the asset's revenue, potentially contributing up to 40% of its total expected income over the contract term. Its stackable nature allows the asset to earn concurrent revenue from wholesale trading and ancillary services. The fixed-price, long-term nature of the agreement is also conducive to securing project-level debt financing.
The Big Rock asset, which was acquired in February 2023, is expected to be operational by December 2024. This contract is a significant step in enhancing Gore Street's revenue generation and diversifying its income streams, which is fundamental to the company's strategy for distributing dividends to its shareholders.
This development is based on a press release statement from Gore Street Energy Storage Fund plc. It highlights the company's progress and strategic positioning within the energy storage market, particularly in California's RA program, which is critical for maintaining the state's energy supply reliability.
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