THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

22 May 2025

Gresham House Energy Storage Fund PLC

("GRID" or the "Company")

Quarterly NAV announcement and business update

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund investing in utility-scale battery energy storage systems (BESS) reports its latest NAV. As of 31 March 2025, NAV was £622.4mn and NAV per share was 109.38p per ordinary share.

Highlights as of 31 March 2025

·    NAV per share was 109.38p, up from 109.35p at 31 December 2024.

·    Operational capacity was 945MW / 1,307MWh on 31 March vs 845MW / 1,207MWh of 31 December 2024 and has subsequently increased to 945MW / 1,447MWh in April.

·    During the quarter, the most significant changes to NAV per share included:

o  +1.16p from new investments to fair value driven by the removing of construction premiums on discount rates for projects becoming operational and the value from acquiring the land at Elland

o  +1.15p from the movement in working capital, fund and debt costs

o  +0.89p on the model roll forward

o  +0.72p from construction updates due to lower battery CAPEX which was partially offset by delayed start dates for projects in construction

o  +0.12p from a reduction in O&M contractual costs at York, Elland and West Bradford

o  -0.05p impact from the movement in the interest rate swap

o  -3.95p from a reduction in revenue forecasts, now reflecting a lower gas cost assumption in the longer term

·    No changes to inflation assumptions or underlying discount rates were made during the period.

·    Weighted average discount rate (WADR) is 10.68% for the full portfolio including projects under construction and 10.54% for the operational portfolio.

·    Operational assets are valued at an average of £698/MW. Discounted cashflows represented £686k/MW of the total while working capital represented the remainder. The increase from year end is from including Melksham as an operational project.

·    NAV does not include potential value upside from new projects and augmentations in the Three-Year Plan as financing has not yet been secured.

·    The underlying portfolio generated revenues of £15.9mn and EBITDA of £11.2mn in Q1 2025.

·    Total debt drawn at the end of the period was £160mn; the total facility size is £195mn.

·    Cash on hand between the Company and its investments was £42.1mn as of 31 March 2025.

Portfolio earnings update

The underlying portfolio generated revenues of £15.9mn resulting in underlying portfolio EBITDA of £11.2mn in Q1 2025, an improvement on Q4 2024 where the portfolio generated revenue of £15.6m and EBITDA of £10.4m. This is due to a larger operational asset base combined with consistent underlying revenue performance. Portfolio revenues rates were £76.5k/MW/Yr[1] in Q1 2025 which was on par with Q4 2024 of £76.4k/MW/Yr.

Merchant revenues from the operational portfolio are currently above the third-party revenue curves for 2025. The third-party merchant forecasts still assume a gradual rate of improvement in revenues in the short term. Meanwhile, we expect that the rollout of improvements in the BM over the rest of 2025 should lead to a further improvement in revenues.

Construction and Pipeline update

Melksham, at a one-hour duration (100MW/100MWh), was completed in January 2025 with the site then beginning augmentation works immediately after commissioning. The augmentation was completed in early April 2025 taking the project to 100MW/200MWh shortly after the quarter end, making it the largest operational project owned by the fund.

The augmentation of Coupar Angus, adding 40MWh to make the site a 2-hour, 40MW/80MWh project, was also finished in April 2025, marking the completion of the current augmentation pipeline. Since the start of 2024, the Manager has added 330MWh of battery capacity through augmentations.

The remaining two projects in construction are expected to complete by the end of Q2 2025. Shilton Lane (40MW / 80MWh) is built and energised up to the DNO connection. This project, however, is waiting on final NESO compliance documentation to be completed before the site can be switched on, which is expected to come through shortly. West Bradford (87MW / 174MWh) is on course to be energised before the end of Q2 2025.

With Shilton Lane and West Bradford, the Company will have completed all new projects and augmentations in construction, taking the operational portfolio to 1,072MW/1,701MWh.

Refinancing update

The final lending groups have been selected for the refinancing and for the new facilities for new projects.  The selected lenders are progressing through materials and work is underway to finalise terms and documentation. The Manager therefore still expects to conclude the refinancing in Q2 2025, with new project financing to follow. Concluding the refinancing and securing additional project finance for new projects is expected to provide capital to fund additional new projects and augmentations, unlocking significant value for the fund. More information on the refinancing and pipeline plans will be announced in due course.

Transaction to demonstrate valuations

A transaction to demonstrate valuations in the portfolio continues to progress well and is in final stages. An announcement on the transaction is expected to be made in the current quarter. The competitive process to acquire HEIT is also encouraging for the sector, demonstrating the widening interest in BESS assets and providing support for industry valuations.

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc & Managing Director of Gresham House Energy Transition, said:

"We have been working hard on the refinancing and new project financing process in order to unlock the funding for the augmentations and new pipeline detailed in our Three-year Plan. I'm pleased to say that we are nearing the end of the refinancing process which will enable us to review capital allocation, including dividends.

"With the refinancing and the current construction pipeline completed later this quarter, we can then look to the future with confidence and start realising the value in our Three-year Plan.

"It has also been good to see continued improvement in revenues for the operational portfolio. This should continue as we bring online more operational capacity and as upgrades to the NESO systems continue to be rolled out."

For further information, please contact:

Gresham House Energy Transition

Ben Guest                                                                   +44 (0) 20 3837 6270
James Bustin

Harry Hutchinson

Jefferies International Limited

Stuart Klein                                                                  +44 (0) 20 7029 8000
Gaudi Le Roux
Harry Randall 

Peel Hunt                                                                 

Luke Simpson                                                               +44 (0) 20 7418 8900
Huw Jeremy                                                        

KL Communications                                                 gh@kl-communications.com
Charles Gorman                                                         +44 (0) 20 3882 6644
Charlotte Francis
Effie Aye-Maung-Hider

JTC (UK) Limited as Company Secretary                GHEnergyStorageCoSec@jtcgroup.com
Christopher Gibbons                                                   +44 (0) 20 7409 0181

LEI: 213800MSJXKH25C23D82

About the Company and the Manager:

Gresham House Energy Storage Fund plc seeks to provide investors with an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility-scale battery energy storage systems (known as BESS) located in Great Britain and internationally. In addition, the Company seeks to provide investors with the prospect of capital growth through the re-investment of net cash generated in excess of the target dividend in accordance with the Company's investment policy.

The Company targets an unlevered Net Asset Value total return of 8% per annum and a levered Net Asset Value total return of 15% per annum, in each case calculated net of the Company's costs and expenses.

Gresham House Asset Management Ltd is the FCA authorised operating business of Gresham House Ltd, a specialist alternative asset manager. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

www.greshamhouse.com

Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK's stated target to reduce carbon emissions. They store excess energy generated by renewable energy sources and then release that stored energy back into the grid during peak hours when there is increased demand.

DISCLAIMERS

This announcement has been prepared for information purposes only. This announcement does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer  to subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor. The merits or suitability of any securities must be independently determined by the recipient on the basis of its own investigation and evaluation of the Company. Any such determination should involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities.

This announcement may not be used in making any investment decision in isolation. This announcement on its own does not contain sufficient information to support an investment decision and investors should ensure that they obtain all available relevant information before making any investment. This announcement does not constitute or form part of and may not be construed as an offer to sell, or an invitation to purchase or otherwise acquire, investments of any description, nor as a recommendation regarding the possible offering or the provision of investment advice by any party. No information in this announcement should be construed as providing financial, investment or other professional advice and each prospective investor should consult its own legal, business, tax and other advisers in evaluating the investment opportunity. No reliance may be placed for any purposes whatsoever on this announcement or its completeness.

The information and opinions contained in this announcement are provided as at the date of the announcement and are subject to change without notice and no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information contained herein and no responsibility, obligation or liability or duty (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company, the Manager, Jefferies, Peel Hunt or any of their affiliates or by any of their respective officers, employees or agents to update or revise publicly any of the statements contained herein. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this announcement or on its completeness, accuracy or fairness. The document has not been approved by any competent regulatory or supervisory authority.

Any investment in Company is speculative, involves a high degree of risk, and could result in the loss of all or substantially all of their investment. Results can be positively or negatively affected by market conditions beyond the control of the Company or any other person. Any data on past performance contained herein is no indication as to future performance and there can be no assurance that any targeted or projected returns will be achieved or that the Company will be able to implement its investment strategy or achieve its investment objectives. Any target returns published by the Company are targets only. There is no guarantee that any such returns can be achieved or can be continued if achieved, nor that the Company will make any distributions whatsoever. There may be other additional risks, uncertainties and factors that could cause the returns generated by the Company to be materially lower than the target returns of the Company.

The information in this announcement may include forward-looking statements, which are based on the current expectations, intentions and projections about future events and trends or other matters that are not historical facts and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereof) or other variations thereof or comparable terminology. These forward-looking statements, as well as those included in any related materials, are not guarantees of future performance and are subject to known and unknown risks, uncertainties, assumptions about the Company and other factors, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur and actual results may differ materially from those expressed or implied by such forward looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements.

Jefferies International Limited and Peel Hunt LLP, which are authorised and regulated by the Financial Conduct Authority in the United Kingdom, are acting only for the Company in connection with the matters described in this announcement and are not acting for or advising any other person, or treating any other person as their client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Jefferies or Peel Hunt (as applicable), or advice to any other person in relation to the matters contained herein. Neither Jefferies, Peel Hunt, nor any of their directors, officers, employees, advisers or agents accept any responsibility or liability whatsoever for this announcement, its contents or otherwise in connection with it or any other information relating to the Company, whether written, oral or in a visual or electronic format. Each of the Company, the Manager, Jefferies, Peel Hunt and their affiliates and their respective officers, employees and agents expressly disclaim any and all liability which may be based on this announcement and any errors therein or omissions therefrom.

No representation or warranty is given to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views contained herein are based on financial, economic, market and other conditions prevailing as at the date of this announcement. The information contained in this announcement will not be updated.