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Highlights
- Investment trusts which focus on energy storage are becoming increasingly popular among investors as green investing is gaining momentum.
- At present, the most popular technology which is used to store the energy generated from renewable sources is Lithium-ion batteries.
- UK Investors can buy the shares of battery storage funds trading on the LSE to get direct exposure to the sector.
Energy storage has become a vital component of the renewable energy market. As environmentally conscious investors are rapidly moving towards green investing, investment trusts which focus on energy storage are becoming increasingly popular investment options. At present, the most popular technology that is used to store the energy produced from renewable sources is Lithium-ion batteries. Technological advancements in the field of energy storage are very important for future energy security.
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The UK aims to completely move to renewable energy sources by 2035 while aiming to achieve its overall net-zero target by 2050. To achieve this ambitious target, oil, coal, and natural gas would have to be substituted with wind and solar power, which typically produce huge amounts of energy at specific periods of time. Thus, storage of this huge amount of energy becomes highly important to balance the overall supply and demand for energy.
Thus, in addition to meeting the demand of consumers, energy storage also helps in the incorporation of renewable energy mix into the power grid, which would, in turn, support the UK in meeting its climate goals. There are three funds listed on the London Stock Exchange (LSE) that provide the investors with direct exposure to the energy storage sector. These include Gresham House Energy Storage Fund plc, Gore Street Energy Storage Fund plc, and Harmony Energy Income Trust plc. Let’s look at the share price performance of these battery storage funds.
Gresham House Energy Storage Fund plc (LON: GRID)
Gresham House Energy Storage Fund is the UK’s leading fund that invests in utility-scale batteries for the storage of energy. With a market cap of £571.38 million, Gresham House Energy Storage Fund plc’s shares closed at GBX 130.00, down by 0.57%, on 22 March 2022. On one-year basis, the fund has given a return of 15.04% to its shareholders as of 22 March 2022, while on a year-to-date basis its return stands at 0.39%.
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Gore Street Energy Storage Fund plc (LON: GSF)
Gore Street Energy Storage Fund primarily focuses on investments in lithium-ion batteries. With a market cap of £403.69 million, Gore Street Energy Storage Fund plc’s shares closed at GBX 113.25, down by 3.21%, on 22 March 2022. On a one-year basis, the fund has given a return of 9.95% to its shareholders as of 22 March 2022, while on a year-to-date basis its return is negative, standing at -4.03%.
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Harmony Energy Income Trust plc (LON:HEIT)
Harmony Energy Income Trust is the most recent energy storage fund to get listed on LSE and it uses two-hour batteries instead of one-hour, which isn’t very common in the UK. Harmony Energy Income Trust plc’s shares closed at GBX 103.00, up by 0.49%, on 22 March 2022. The trust floated in London recently in November 2021 and its return on a year-to-date basis stands at 3.26% as of 22 March 2022.
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