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Battery storage funds offer opportunity for high returns as power price volatility remains, says broker

Battery storage funds offer opportunity for high returns as power price volatility remains, says broker

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As the use of coal power tails off, imbalances in between supply and demand are expected to drive more power price volatility and returns for battery energy storage systems (BESS) and the funds that specialise in them. Returns of BESS investments for the likes of Gore Street Energy Storage Fund PLC and Gresham House Energy Storage Fund PLC should remain high, analysts at Berenberg predict, given that they depend on the growth of electricity markets and part of their revenues are linked to power price volatility.

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