Having raised the world’s first listed energy storage fund, Alex O’Cinneide, chief executive of Gore Street Capital Partners, talks to us about the still ‘nascent asset class’ and why his firm has chosen to focus on Vietnam, Thailand and Laos in Asia.
Q: What does an energy storage project need to be a bankable infrastructure investment?
AOC: Energy storage is still as nascent asset class and as such bankability is still not where we would like it to be. We need to see lenders look at the short-term nature of these contracts and get comfortable with those to be able to have a normal capital structure.
Q: Which Asian markets offer the best prospects for an energy storage investor?
AOC: In Asia, we are looking very heavily at markets such as Vietnam, Thailand and Laos. A combination of the decommissioning of a coal and some issues in the transmission grid allow storage to be a very attractive opportunity.
Q: You are one of the few managers raising a storage fund. Why did you decide to list your fund instead of raising it as an unlisted vehicle?
AOC: We raised the world’s first listed energy storage fund and we did so because the market opportunity is multi-billion. So, we wanted the opportunity to continue to go back to the market and raise capital against that market opportunity – something that is more difficult in a normal GP/LP fund.