Gore Street Capital Appointed Joint Manager of Japan's first Energy Storage Fund

LONDON, Dec. 4, 2023 /PRNewswire/ -- Gore Street Capital and ITOCHU Corporation have been selected by the Tokyo Metropolitan Government (TMG) to launch Japan's first fund dedicated to grid-scale energy storage systems.

The two firms have been jointly selected as the managers of TMG's energy creation and energy storage promotion fund following a competitive process held in April 2023. The pair will launch a joint venture to manage the public-private partnership fund, to which TMG will contribute ¥2bn (£10.6m) in funds by the end of fiscal year 2023. Additional funding will be raised from the private sector, including from ITOCHU.

The fund will be targeted at projects in the Kanto region of Japan. TMG intends for the energy storage assets to support its efforts to expand renewable electricity usage to 50% by 2030. ITOCHU is already developing several grid storage battery projects in Japan, with a cumulative total of more than 100 MWh of assets under development.

Alex O'Cinneide, CEO of Gore Street Capital, said: "We are proud to have been selected as the joint manager of Japan's first dedicated energy storage fund in partnership with ITOCHU. 

"Gore Street Capital was one of the first to act in Great Britain's energy storage market back in 2016 and, in its capacity as investment manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), has a proven track record of acquiring and managing a large portfolio of energy storage assets across multiple OECD jurisdictions.

"We have developed a specialist platform offering the full range of technical expertise needed to successfully monetise energy storage assets throughout their lifetime, from acquisition and construction, asset management and commercialisation all the way through to decommissioning and recycling.

"We look forward to bringing this experience to Japan, alongside our partners at ITOCHU, to deploy the energy storage capacity needed to accelerate the country's clean energy transition to a low-carbon and sustainable future."

The new fund will aim to establish a new green financing model for investments in Japan's nascent utility-scale energy storage sector. GSC and ITOCHU will jointly manage the investment and technical decisions taken by the fund, creating the foundations for the country's future deployment of grid-level energy storage assets.

Several revenue streams are already in place nationally to support new energy storage, including access to Japan Electric Power Exchange (JEPX) – one of the most mature wholesale energy markets in the Asia–Pacific region – and grid balancing services.

New ancillary services are expected to launch in 2024 alongside a low-carbon capacity market allowing battery energy storage of three hours to participate in auctions scheduled for 2023 and 2024 and secure subsidies over a 20-year period.

Suminori Arima, chief investment officer at Gore Street Capital, said: "We are highly experienced in entering new markets as a first mover to help establish energy storage as crucial technology of the energy transition. The market conditions in Japan are poised to offer significant opportunities for those willing to take them.

"Through this collaboration with ITOCHU, we are excited to build on our experience and help shape the future of the Japanese energy storage sector."

Notes to Editors 

About Gore Street Capital

Gore Street Capital was formed in 2015 as a global platform to acquire and manage renewable energy solutions. As an experienced renewable energy, infrastructure, and private equity investment manager, it supports robust businesses and high-performing assets that contribute towards the transition to a low-carbon economy.   

In 2018, Gore Street Capital created the UK energy storage investment class, listing Gore Street Energy Storage Fund (LSE: GSF) on the premium segment of the London Stock Exchange. As the Investment Manager of GSF, it has played a material impact in the growth of GSF from £30m to finance the acquisition of a 10 MW seed portfolio in Great Britain to a market cap of over £451m as of 30 June 2023.   

Gore Street Capital comprises a diverse team of 45 energy professionals in GB, Ireland and the US working across finance, construction, engineering, legal and more to support the construction and operation of energy storage systems around the world. It currently manages an energy storage portfolio of almost 1.2 GW spread across five uncorrelated energy markets, supported by a global supply chain.

www.gorestreetcap.com / info@gorestreetcap.com / 0204 551 1382

Executive directors:

Alex O'Cinneide is CEO and Chair of the Investment Committee of Gore Street Capital, which he founded in 2015 as a global platform to facilitate the deployment of renewable energy solutions. Alex's career has included senior roles at KPMG, Quorum European Partners, Kleinwort Benson, Paladin Capital Group and utility-scale renewables developer Masdar Capital, where he served as Head of Investments and General Manager for six years. He holds academic qualifications from Trinity College Dublin, the London Business School and the London School of Economics and Political Science.

Suminori Arima is Chief Investment Officer and Chief Financial Officer of Gore Street Capital. He previously led renewable energy transactions as Managing Director of Kleinwort Benson and was responsible for private equity investment management for over $1bn of asset under management while serving as Managing Director of RHJ International/Ripplewood in Tokyo (parent company of Kleinwort Benson).  He has also worked in Debt Capital Markets at JP Morgan and prior to that, at McKinsey & Company.

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