GRESHAM HOUSE ENERGY STORAGE FUND PLC

Annual Report • Apr 29, 2024

Highlights Chair’s Statement Investment Manager’s Report Portfolio Sustainability Report Task Force on Climate-related Financial Disclosures (TCFD) Strategic Report Principal Risks and Uncertainties Stakeholder Engagement and Statement under Section 172 Board of Directors Investment Team Directors Report Directors Remuneration Report Corporate Governance Report Audit Committee Report Remuneration Committee Report Nomination Committee Report Management Engagement Committee Report Independent Auditor’s Report to the Members of Gresham House Energy Storage Fund plc Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Alternative Performance Measures Company Information Glossary Periodic (annual) disclosures - Annex IV (EU) 2022/1288) Powering the renewable energy transition Gresham House Energy Storage Fund plc (GRID) Annual Report and Financial Statements for the year ended 31 December 2023 Contents Highlights 4 Chair’s Statement 6 Investment Manager’s Report 10 Portfolio 15 Sustainability Report 28 Task Force on Climate-related Financial Disclosures (TCFD) 31 Strategic Report 39 Principal Risks and Uncertainties 44 Stakeholder Engagement and Statement under Section 172 49 Board of Directors 51 Investment Team 53 Directors Report 56 Directors Remuneration Report 61 Corporate Governance Report 65 Audit Committee Report 70 Remuneration Committee Report 74 Nomination Committee Report 76 Management Engagement Committee Report 78 Independent Auditor’s Report to the Members of Gresham House Energy Storage Fund plc 80 Statement of Comprehensive Income 87 Statement of Financial Position 88 Statement of Changes in Equity 89 Statement of Cash Flows 90 Notes to the Financial Statements 91 Alternative Performance Measures 114 Company Information 118 Glossar y 119 Periodic (annual) disclosures - Annex IV (EU) 2022/1288) 122 2 Gresham House Energy Storage Fund plc (GRID) Real time energy storage to address supply-demand imbalances to enable renewable energy Gresham House Energy Storage Fund plc (GRID, the Fund or Company) invests in a portfolio of utility-scale operational Battery Energy Storage Systems (BESS) in Great Britain and beyond. Gresham House Energy Storage Fund plc (GRID) 3 Highlights 129.07p -17% £50.0mn £(110.1)mn £25.8mn -47% 5.5p -12.9% +40.1% 690 MW +25.5% NAV per share (as at 31 December 2023) Total gross equity funds raised (as at 31 December 2023) Company (loss) / prot and total comprehensive income (as at 31 December 2023) EBITDA of underlying investment portfolio 1 (as at 31 December 2023) Dividend per Ordinary Share 1 (as at 31 December 2023) NAV per Ordinary Share Total Return 1 (as at 31 December 2023) Ordinary Share Price Total Return since IPO 1 (as at 31 December 2023) Operational portfolio size 1 (as at 31 December 2023) Dec 22 Dec 22 Dec 22 Dec 22 Dec 22 Dec 22 Dec 22 Dec 22 Dec 23 Dec 23 Dec 23 Dec 23 Dec 23 Dec 23 Dec 23 Dec 23 129.07p £50mn £(110.1)m n £25.8mn 5.5p -12. 9% +40.1% 690MW / 788MWh 155.51p £150mn £217.1mn £48.8mn 7.0p +40.1% +96.4% 550MW / 598MWh 1 Alternative Performance Measures are dened and calculated on page 114 Gresham House Energy Storage Fund plc (GRID)4 Performance highlights  The Net Asset Value (NAV) as at 31 December 2023 declined to £740.1mn or 129.07 pence per share (HY 2023: 145.11 pence / FY 2022 155.51 pence).   decided to not declare a dividend in relation to Q4 2023. Dividends totalling 5.51 pence per share were paid in       balance between merchant and contractual revenues with        155.5 pence per share. Operational highlights   1             1.09 hours as at 31 December 2022 to 1.14 hours as at 31    calculated on page 114 5Gresham House Energy Storage Fund plc (GRID) Chair’s Statement Summary    31 December 2023.               our action plans.     2          nationalised later in 2024.         to consumer bills.      3 .               4                  Intermittent renewable generation is still increasing sharply, driving the need for BESS in Great Britain “ On behalf of the Board, I present the Annual Report and Accounts of Gresham House Energy Storage Fund plc (“GRID”, the “Fund” or the “Company”) for the year ending 31 December 2023. 6 Gresham House Energy Storage Fund plc (GRID)            recent programme was completed on 17 April 2024 and is not being renewed.              Strategic focus and capital allocation   protect shareholder value and come through this period well    1. Capital expenditure             remainder with debt. 2. Dividends               covenant testing. Dividends will be commensurate with a blended merchant and contractual income model. 3. Share buybacks         2024 NAV per share.  on 17 April 2024 and has not been renewed. This is in      4. Debt facility          agreement includes:          longer time period. Gresham House Energy Storage Fund plc (GRID) 7 Financial Statements Additional Information Annual Report  drive immediate earnings and increase cash generation   to revisit international opportunities to enhance our     pursued once earnings improve and capital is available. Discount rates and valuations     2022) which remains higher than our listed peers.   commissioning (and a 75bp premium to the discount rate is                    current pipeline in addition to giving the business breathing         Total debt to Gross Asset Value 5   have been completed. 5. Project disposals to refocus capital    coming month or two. Portfolio, transactions, and pipeline              to announce that Arbroath completed its upgrade on 2           calculated on page 114. Gresham House Energy Storage Fund plc (GRID)8 Annual Report Financial Statements Additional Information Capital structure and share price performance The higher interest rate environment has seen capital  has impacted share prices across the renewables and       discussions with the lending group and was unable to                            Dividends   cancelled due to low operational dividend coverage and       revenue environment.   Sustainability         page 28. 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John Leggate CBE, FREng Chair  Gresham House Energy Storage Fund plc (GRID) 9 Financial Statements Additional Information Annual Report                          Deployment of capital into improving the portfolio     which are approaching construction completion and the     been paid as at 31 December 2023. This means that there                       Diversication into contracted revenue streams             Investment Manager’s Report Gresham House Asset Management Limited (GHAM) is wholly owned by Gresham House Limited (formerly Gresham House plc), a specialist alternative asset manager. Gresham House provides funds, direct investments, and tailored investment solutions, including co-investment, across a range of highly dierentiated alternative strategies. Gresham House's expertise includes strategic public equity, private equity, forestry, housing, new energy, and infrastructure. 10 Gresham House Energy Storage Fund plc (GRID) Portfolio and pipeline overview: additional capacity and durations                 connection increase at Nevendon) are due to commission               to reduce construction time and outages to ensure minimal revenue impact to the original sites during construction. The    being upgraded: Existing assets Capacity (MW) Battery size (MWh) Battery duration (c.hours) Capacity following augmentation (MW) Battery size following augmentation (MWh) Battery duration following augmentation (c. hours) Op era tion al s tat us a t 31 December 2023 and augmentation target Arbroath 35 35.0 1.00 35 47.5 1.35 Augmentation completed: Apr 24 Nevendon 10 7.1 0.70 15 33.0 2.20 Operational   50 50.0 1.00 50 100.0 2.00 Operational    50 50.0 1.00 50 100.0 2.00 Operational   Angus 40 40.0 1.00 40  2.00 Operational Q1 2023  Penwortham 50 50.0 1.00 50 100.0 2.00 Target energisation:  Augmentation: Oct 24  100 100.0 1.00 100 200.0 2.00 Target energisation: Q2 24 Augmentation: Oct 24 Total Operational 335 332.1 0.99 340 660.5 1.94 Gresham House Energy Storage Fund plc (GRID) 11 Financial Statements Additional Information Annual Report    on 2 April 2024.      6 . Resulting Pipeline & Portfolio moves to 1,696 MWh by the end of 2024    Projected MW / MWh growth over 2024 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Capacity (MW and MWh) Annualised Monthly Revenues (£) £30,000/MW per year revenue level £120,000/MW per year revenue level £210,000/MW per year revenue level Projected Capacity (MWh) RHS Historical Capacity (MWh) RHS Projected Capacity (MW) RHS Historical Capacity (MW) RHS Projected revenue @ target deployment using full year 2023 revenue levels Gresham House Energy Storage Fund plc (GRID)12 Annual Report Financial Statements Additional Information Map ref. Existing assets Capacity (MW) Battery size (MWh) Capacity post augmentation (MW) Battery size post augmentation (MWh) Battery duration post augmentation (c. hours) Operational status at 31 December 2023 1  20 3 20 3 0.20 Operational 2  7 9 7 9 1.35 Operational 3  15 22 15 22 1.45 Operational 4       Operational 5  20  20  1.30 Operational   5  5  1.55 Operational 7  40  40  0.70 Operational   10 7 10 7 0.70 Operational 9  49 74 49 74 1.50 Operational 10  41 47 41 47 1.15 Operational 11  50 75 50 75 1.50 Operational 12  50 74 50 74 1.50 Operational 13  25 17 25 17 0.70 Operational 14   10 10 10 10 1.00 Operational 15 Nevendon 10 7 15 33 2.20 Operational     35  35   Operational 17  30 30 30 30 1.00 Operational  Arbroath 35 35 35  1.35 Operational Augmentation: completed 19  50 50 50 100 2.00 Operational  20  40 40 40 40 1.00 Operational 21  40 40 40  2.00 Operational Q1 23  22 Grendon 1 50 100 50 100 2.00 Operational Q4 23 23  50 50 50 100 2.00 Operational  Total operational 690 788 695  1.39 24  50  50  1.50  25 Penwortham 50 50 50 100 2.00 Target energisation: April 24 Augmentation: October 24   100 100 100 200 2.00 Target energisation: Q2 24 Augmentation: October 24 27  40  40  2.00 Target energisation: April 24    174  174 2.00 Target energisation: H2 24 29  50 100 50 100 2.00 Target energisation: H2 24 Total Operational or Under Construction 1,067 1,368 1,072 1,696 1.58 30  100 200 100 200 2.00  Total portfolio owned by the company 1,167 1,568 1,172 1,896 1.62 Table 1. Company portfolio (operational, in-construction & pre-construction projects) and exclusive pipeline Gresham House Energy Storage Fund plc (GRID) 13 Financial Statements Additional Information Annual Report Map ref. Pipeline projects Capacity (MW) Battery size (MWh) Capacity post augmentation (MW) Battery size post augmentation (MWh) Battery duration post augmentation (c. hours) Operational status at 31 December 2023 31 Grendon 2 50 100 50 100 2.00  32   170  170 2.00  33  50 100 50 100 2.00  34  50 100 50 100 2.00  Total Additional Pipeline not owned by the Company 235 470 235 470 2.00 - Total Portfolio and Additional Pipeline 1,402 2,038 1,407 2,366 1.68 -  Table 2 - Pipeline summary Gresham House Energy Storage Fund plc (GRID)14 Annual Report Financial Statements Additional Information Portfolio Key  Operational Pipeline 1 2 3 4 5    21 17 13  9 25 24 30 31  19 10 23 12 15 7/14 27 33 34 20 22  29 11 32 15Gresham House Energy Storage Fund plc (GRID) NAV performance and analysis NAV per share 7   share at 31 December 2022).  7              earnings and cash generation potential.    current NAV and NAV per share calculation.  page 114 Financial performance                larger percentage.       Revenue mix FY 2023 vs FY 2022 13.9% 27.5% 0.0% 4.6% 31.4% 48.4% 1.9% 0.4% 4.8% 1.1% 25.2% 10.6% 22.7% 7.4% 2023 2022 Firm Frequency Response FFR Enhanced Frequency Response EFR Dynamic Containment DC Dynamic Modulation DM Dynamic Regulation DR Trading Capacity Market Gresham House Energy Storage Fund plc (GRID)16 Annual Report Financial Statements Additional Information Detailed revenue commentary Frequency Response  retired in November 2023 and saw procured volume                         price spread available.       Trading            trading opportunities in 2023.                due to the lower incremental cost to add the additional      Gresham House Energy Storage Fund plc (GRID) 17 Financial Statements Additional Information Annual Report Other operating performance           trading environment.                           we are seeing some DNOs start to recognise this value   assets in due course. Revenue mix 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 01/01/2021 01/02/2021 01/03/2021 01/04/2021 01/05/2021 01/06/2021 01/07/2021 01/08/2021 01/09/2021 01/10/2021 01/11/2021 01/12/2021 01/01/2022 01/02/2022 01/03/2022 01/04/2022 01/05/2022 01/06/2022 01/07/2022 01/08/2022 01/09/2022 01/10/2022 01/11/2022 01/12/2022 01/01/2023 01/02/2023 01/03/2023 01/04/2023 01/05/2023 01/06/2023 01/07/2023 01/08/2023 01/09/2023 01/10/2023 01/11/2023 01/12/2023 Trading Frequency Response Capacity Market Gresham House Energy Storage Fund plc (GRID)18 Annual Report Financial Statements Additional Information Track record over the last ve years      power consumption habits changed during widespread                   in August 2022.           This will change as demand increases with ongoing   begins to retire either due to age or economics as plant       renewables build out. Revenues (actual) with revenue ranges vs Capacity (MW) - 200 400 600 800 1,000 1,200 1,400 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Capacity (MW) Annualised Monthly Revenues (£) Historical Capacity (MW) RHS Projected Capacity (MW) RHS Annualised Actual Monthly Revenue (£) £30,000/MW per year revenue level £120,000/MW per year revenue level £210,000/MW per year revenue level Gresham House Energy Storage Fund plc (GRID) 19 Financial Statements Additional Information Annual Report Market update National Grid ESO and the Balancing Mechanism The trading and revenue environment remains challenging      8    the consumer £150mn in 2023 alone 9 .     solutions to these issues.                          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 be open to all assets including batteries and it will operate                            Gresham House Energy Storage Fund plc (GRID)20 Annual Report Financial Statements Additional Information Electricity demand  demand stabilise in 2023 as shown in the chart below.   decreased and electrical goods such as lighting have  lighting). This gradual decline in demand has led to an      this downtrend.    consumption and replaces oil and gas consumption.   10   11 .    12                  Daily demand spread 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Max Demand Min Demand Gresham House Energy Storage Fund plc (GRID) 21 Financial Statements Additional Information Annual Report FES - Forecast demand 0 100 200 300 400 500 600 700 800 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Consumer Transformation Leading the Way System Transformation Falling Short Gresham House Energy Storage Fund plc (GRID)22 Annual Report Financial Statements Additional Information Electricity supply             generators as needed. This has both crowded batteries out                                      Average daily peak coal generation (MW) - 500 1,000 1,500 2,000 2,500 3,000 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Gresham House Energy Storage Fund plc (GRID) 23 Financial Statements Additional Information Annual Report Valuations methodology         investments included in the valuations is set out below. NAV (p/share) bridge from 31 December 2022 to 31 December 2023 155.51 155.39 129.31 129.07 3.07 0.66 5.73 1.52 3.96 (0.12) (1.81) (7.26) (0.19) (27.83) (2.97) (0.09) (0.87) (0.24) 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00 31 December 2022 NAV Interest rate swap position 31 December 2022 NAV exc. Interest rate hedge Net Fund and SPV Working Capital Debt costs Dividends Transaction fees Rollforward Revenue forecasts New Investments to FV Site upgrades and commissioning changes New CM contracts Cost assumptions Change inflation rates Change in discount rate 31 December 2023 NAV exc. Interest rate hedge Interest rate swap position 31 December 2023 NAV NAV/Share Increase Decrease Gresham House Energy Storage Fund plc (GRID)24 Annual Report Financial Statements Additional Information                            trading environment.         streams in relation to 2024 and we assume revenues      Valuation basis Discount rate approach applied: MW (31 Dec 2022) MW (30 Jun 2023) MW (31 Dec 2023)     change)  590   (energised)    in earlier periods) 40    (energised)   valuation date: 75bps construction premium to Operational discount rates (75bps at FY22 and 50bps at HY22) 50  50 Total MW in Operational Portfolio 550 590 690   75bps construction premium to Operational discount rates (75bps at FY22 and 50bps at HY22) 437 437 377  Assets held at cost as valuation thresholds not met 230 140 100 Total Portfolio MW included in valuations 1,217 1,167 1,167 Gresham House Energy Storage Fund plc (GRID) 25 Annual Report Financial Statements Additional Information The latest revenue assumptions used in our valuations are shown in the chart below. The discount rates applied in the valuations at 31 December                assets being valued as operational.           2024 2025 2026 2027+  assumptions at 31 Dec 2023            assumptions at 30 June 2023            assumptions at 31 Dec 2022           Modelled revenue inputs £/MW/yr 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 1 Hour 1.5 Hour 2 Hour 0.5 Hour Gresham House Energy Storage Fund plc (GRID)26 Annual Report Financial Statements Additional Information             December 2023 valuation assumptions but will be included in the Q1 2024 valuations. Outlook    place additional operational headroom to navigate through  amending and restating its loan arrangements.             downtrend in revenues has passed its low point and that                  it at more attractive returns. This will also demonstrate the      Gresham House Energy Storage Fund plc (GRID) 27 Financial Statements Additional Information Annual Report Introduction                    reported here.          31 Dec 2023 31 Dec 2022          )   ):         593  Sustainability Report This Sustainability Report describes the integration and enhancement of sustainability in the Company’s investment processes and asset operations. 28 Gresham House Energy Storage Fund plc (GRID) Grendon Case Study       renewable power to be stored and then released over a     13    14    15 .               OFGEM 14.  BEIS 2022. 15. e – BEIS 2021 Environment                       sites. This increased average duration provides greater          Gresham House Energy Storage Fund plc (GRID) 29 Financial Statements Additional Information Annual Report          avoided. Social As we continue to achieve our goals in increasing            Governance                    Gresham House Energy Storage Fund plc (GRID)30 Annual Report Financial Statements Additional Information     our investments.       related disclosures. 2            through due diligence processes entered into when  parties as appropriate.            This is available on the Gresham House website. Gresham                  Governance 1  and opportunities.                      Gresham House New Energy Sustainable Investment Policy. Task Force on Climate-related Financial Disclosures (TCFD) The recommendations of the Task Force on Climate-Related Financial Disclosures provide a reporting framework based on a set of consistent disclosure recommendations. This framework provides a level of comparability and transparency around climate-related risk exposures and approaches. 31Gresham House Energy Storage Fund plc (GRID)             intermittent and which have contributed to additional       weather events.                                      Strategy 3             Gresham House Energy Storage Fund plc (GRID)32 Annual Report Financial Statements Additional Information 4    Investment portfolio Opportunities               opportunities once operational. Risks        phase and the geographic spread provides resilience against localised issues. Strategy Opportunities         Timeframe Opportunity Risks           trading activities              sustainable and impact investing    lead to increased investment in companies that enable         associated costs      As economies continue to move   could increase power prices    and provide new opportunities to increase participation in                Gresham House Energy Storage Fund plc (GRID) 33 Financial Statements Additional Information Annual Report      Risks             Financial planning Opportunities  credentials that are addressing environmental and social                           Risks      will be diminished. Over time this could lead to the reduction        5    Physical risks              provides resilience against localised issues. Transition risks                      air conditioning). Gresham House Energy Storage Fund plc (GRID)34 Annual Report Financial Statements Additional Information             revenue opportunities even in low case scenarios. Risk Management 6                                          assessment approach in line with the evolving nature  tools and data. 7       Physical risks                 have temperature managements (such as air conditioning    Transition risk              initial consultation responses in October 2022 and holding several meetings during this time on proposals       design is agreed on. Gresham House Energy Storage Fund plc (GRID) 35 Financial Statements Additional Information Annual Report    8           Metrics 9                               e)    e)   emissions/£mn revenue)    10         controlled sources                Metric 2023 2022 e)   e)    e)  593   297   Carbon emissions methodology        More information on Scope 1, 2 and 3 emissions       obligations and did not represent a material trading return. Gresham House Energy Storage Fund plc (GRID)36 Annual Report Financial Statements Additional Information          emissions associated with loss during transmission and       providers to establish suitable mechanisms to calculate  support these estimates has commenced. For this report     Weighted-average carbon intensity methodology and metric        11    BESS capacity       chain challenges.   Operational capacity Total pipeline capacity 31 December 2020   31 December 2021   31 December 2022   31 December 2023   GHG emissions avoided                       510,291 tCO  677,775 tCO Carbon emissions avoided methodology       This calculation demonstrates the operational carbon   carbon emissions and their role in supporting increased   Gresham House Energy Storage Fund plc (GRID) 37 Financial Statements Additional Information Annual Report   avoidance methodologies: 1    2                such as gas or even coal.             will be miscalculated.   response services.   assets were not available to the grid and the grid had    services is assumed to be a plant at the operating margin.        then multiplied against the average operational margin grid     This baseline is then compared to the actual calculated emissions to calculate the emissions avoided. The approach               ). Target for GHG emissions avoided   is the emissions associated with investments managed    Gresham House Energy Storage Fund plc (GRID)38 Annual Report Financial Statements Additional Information Business review and outlook    page 10.                Key Performance Indicators  detailed in the Highlights section on page 4 and        page 6 and page 10.      31 December 2023.                 Investment Policy: diversication of assets and revenues                    investment agreements and other transactional documents. Strategic Report The Directors present their Strategic Report for the period ended 31 December 2023. Details of the Directors who held oce during the period and as at the date of this report are given on page 51 of the Annual Report and Financial Statements. This Strategic Report has been prepared in accordance with the requirements of Section 414 of the Companies Act 2006 and best practice. Its purpose is to inform the members of the Company and help them to assess how the Directors have performed their duty to promote the success of the Company, in accordance with Section 172 of the Companies Act 2006. 39Gresham House Energy Storage Fund plc (GRID) Asset type and diversication         batteries/machines and compressed air technologies) and will consider such investments (including combinations                  Overseas Jurisdictions.    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               Other investment restrictions    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     relevant upgrades.       Investment in Developers     £1mn in aggregate. Cash management               Leverage and derivatives                   into interest rate swap agreements in relation to each     Ecient portfolio management    power price hedging. Amendment to and compliance with investment policy       Bribery and Corruption Policy      Gresham House Energy Storage Fund plc (GRID) 41 Financial Statements Additional Information Annual Report Dividends      covenant testing. Dividends will be commensurate with a         dividend in relation to 2024       other arrangements.           Share buybacks  at prices which represent a discount to the prevailing                       will be cancelled.            this programme should be recommenced. Continuation votes            was not passed. Going concern and viability      page 44      Going concern Gresham House Energy Storage Fund plc (GRID)42 Annual Report Financial Statements Additional Information         page 8   levels in line with the current revenue environment and to                 debt covenants. page 6 and page 10 the  trading environment throughout 2023 and into 2024        assessments are made on a conservative basis assuming improvements to the revenue environment will happen  The Directors have applied two scenarios to their going concern assessment: 1        2 a severe but possible downside case scenario which     available to meet current obligations and commitments as            Viability statement             assessment period.                     Gresham House Energy Storage Fund plc (GRID) 43 Financial Statements Additional Information Annual Report Existing risks in detail Risk area Gross impact Mitigation Net impact   grid connections and their impact  commissioning dates causing  revenues and earnings.   HY: medium)   timescales.     dividends on the timescales     high as it has the potential  to service debt and provide  Due to the low revenue    important     capital.   2023 HY: high)     substantial NAV discount       which have been amended and     and restated to enable the      achievable within the amended  agreement. These are monitored  As debt is drawn the  rate hedging instruments to  The short term low revenue environment has increased   these been modelled as     online to capture higher  Risk management approach       designed to respond to the changing environment in which        Principal Risks and Uncertainties 44 Gresham House Energy Storage Fund plc (GRID) Risk area Gross impact Mitigation Net impact  assets are based on a business model which relies on certain revenue streams sourced  mechanisms and    renewables.   2023 HY: high)  Grid in relation to services  A) National Grid moving  ambition (e.g. utilising thermal   income earning opportunities  and have potential impact on    utilising available assets     intermittent renewable assets which create revenue  and instead move to other strategies which impact on   on the revenues available to        investments are able to select which services to provide on    optimisation partners.   has created revenue streams                    multiple revenue streams  The income stream   over time.    has had limited access to    monitored and managed restoring appropriate usage    Operational and   investments leading    HY: medium)    in the best commercial manner to capture revenue streams which could lead to reduction in valuations.       contracts with suppliers    support.   services saturation creates lower revenue streams.    new investments is considered  operation.  commissioning testing to ensure    designed and operated to ensure    optimisation partners.     income streams to ensure           optimisers to ensure assets are designed and operated    tested and reviewed.   investments have been  and this has increased the     these assets. Gresham House Energy Storage Fund plc (GRID) 45 Financial Statements Additional Information Annual Report Risk area Gross impact Mitigation Net impact   medium  HY: medium)       impacted on the whole       opportunities are in place.        available but no investments  term.   medium  HY: low)  are valued using discounted     value.       upon these valuations.   pricing curves.   income streams using discount rates appropriate to the  The weighted average discount      appropriateness.   when the discount rates are considered.   revenue curves used do not     to generate a coherent     over the period to 2027.  batteries and other    HY: medium)   investments due to incomplete  timescales.   investments less attractive and impacting on overall returns.    12 months and are not reliant  components.     in relation to current       HY: low)    supplier.  contractual arrangements      remains incentivised to continue to grow the         HY: low)         compliance in a low revenue  capitalised the loan with  Gresham House Energy Storage Fund plc (GRID)46 Annual Report Financial Statements Additional Information Risk area Gross impact Mitigation Net impact   Governance: production and     HY: low)  installed and operated with      needs to be considered and minimised.   global partners who ensure their      chain review in 2022.   development and research. The  low environmental impact. This             considered in comparison to other options when   continue to minimise this over time. Gresham House Energy Storage Fund plc (GRID) 47 Financial Statements Additional Information Annual Report Emerging risks Risk area Gross impact Mitigation Net impact  not in accordance     2023)   undermines shareholder  undermines share price and   amended and restated and a new  in 2025. The dividend will be dependent on    reviewed.    with improvements to   revenue opportunities. This will allow dividends to resume in due course.    storage assets.   HY: low)         costs.  technologies with associated Tier 1 supplier warranties and   review available technologies.     these batteries and impact on the    the valuation model assumes continuing cost reductions  time.     sanctions.   2023 HY: medium)  would cause the disruption         orders in advance.  secured appropriate    low. Gresham House Energy Storage Fund plc (GRID)48 Annual Report Financial Statements Additional Information        assets are located   service providers Engagement with shareholders and lenders Who they are?      Why is it important to engage with this group of stakeholders?      How has the Company engaged with the equity investors and lenders?               members have made themselves available to engage          What came out of the engagement?        cancelling the Q4 2023 dividend.      the medium term.          Engagement with the Investment Manager Who they are?      Why is it important to engage with the Investment Manager?     Stakeholder Engagement and Statement under Section 172 The Board recognises that the Company should be run for the benet of shareholders, but that the long term success of a business is dependent on maintaining relationships with stakeholders and considering the external impact of the Company’s activities. 49Gresham House Energy Storage Fund plc (GRID) How does the Company engage with the Investment Manager?                        What came out of the engagement?         revisited governance and resourcing arrangements going  Engagement with communities  ensures all relevant planning and construction conditions      with communities. Engagement with business partners and key service providers Who they are?  provide management services. Why is it important to engage with the key service providers?    How does the Company engage with the key service providers?              What came out of the engagement?     Key strategic decisions during 2023                     John S Leggate CBE, FREng Chair  Gresham House Energy Storage Fund plc (GRID)50 Annual Report Financial Statements Additional Information                and during 2023 considered there to be no immediate  page 76. Board of Directors Duncan Neale Audit Committee Chair and Independent Non-Executive Director   John Leggate CBE, FREng Chair and Independent Non-Executive Director   Catherine Pitt Chair of the Nomination Committee and Independent Non-Executive Director   David Stevenson Chair of the Remuneration Committee and Senior Independent Non-Executive Director   Isabel Liu Chair of the Management Engagement Committee and Independent Non-Executive Director  on 1 October 2022. The Company has a Board of ve Independent Non-Executive Directors. The Board has 40% female and 20% ethnic minority representation. The Board has also adopted a formal diversity policy and considers diversity on the Company’s Board as an important part of its existing skills, experience and knowledge. 51Gresham House Energy Storage Fund plc (GRID) John Leggate CBE, FREng           Isabel Liu               Duncan Neale           Catherine Pitt         David Stevenson                  appointments or resignations. Gresham House Energy Storage Fund plc (GRID)52 Annual Report Financial Statements Additional Information Investment Team Rupert Robinson Managing Director, Gresham House Asset Management Limited Lefteris Strakosias Investment Director, New Energy Charlie Von Schmeider Investment Director, New Energy Stephen Beck Finance Director, Real Assets Nick Vest Finance Director, Energy Storage Fernando Casas Garcia Head of Operations and Asset Manager, New Energy Ana Segizbayeva Associate Director, Project Delivery, New Energy Ben Guest Managing Director, New Energy James Bustin Investment Manager, New Energy 53Gresham House Energy Storage Fund plc (GRID) Ben Guest               James Bustin      as new investments.      Charlie von Schmieder              Lefteris Strakosias              Ana Segizbayeva     Gresham House Energy Storage Fund plc (GRID)54 Annual Report Financial Statements Additional Information            Fernando Casas Garcia          increasing overall revenues. Stephen Beck             carbon solutions. Nick Vest        Rupert Robinson        to shareholders.       Gresham House Energy Storage Fund plc (GRID) 55 Annual Report Financial Statements Additional Information Company performance    page 10 and the page 6. Financial risk management      page 107. Share capital          2023 (2022: nil). Dividends       page 6   Directors Report The Directors present the Annual Report and Financial Statements of the Company for the year ended 31 December 2023. The Company has no employees. The Directors during the period, including their appointment dates, are set out in the Nomination Committee Report on page 76. The Corporate Governance Report on page 65 forms part of this report. Period in relation to which dividend was paid Announcement date Ex-dividend date Payment date Amount per Ordinary Share Total amount       1 April to 30 June 2023   2023  2023      17 November 2023 7 December 2023 21 December 2023     56 Gresham House Energy Storage Fund plc (GRID) Substantial interests          page 61. Annual General Meeting (AGM)          Auditor   Directors’ responsibilities   applicable law and regulations.      accounting standards. Shareholder Number of Ordinary Shares as at 31 Dec 2023 Percentage of Issued Share Capital as at 31 Dec 2023                                     Shareholder Number of Ordinary Shares as at 26 April 2024 Percentage of Issued Share Capital as at 26 April 2024                              Gresham House Energy Storage Fund plc (GRID) 57 Financial Statements Additional Information Annual Report                    basis unless it is inappropriate to presume that the                    Website publication           Directors’ responsibilities pursuant to DTR 4              Insurance cover   Corporate governance    page 65. Streamlined energy and carbon reporting: quantication and reporting methodology Associated greenhouse gases have been calculated in       Boundaries      gas or diesel generators. These have been included in our   Gresham House Energy Storage Fund plc (GRID)58 Annual Report Financial Statements Additional Information Measures taken to improve energy eciency            gas generators. Going concern The going concern statement is detailed on page 42  Energy used: 2023 2022 e Gas consumption   Diesel consumption  124 Total Scope 1 7,541 9,423 e    Total Scope 2 5,228 5,149 e Transmission and distribution losses  593 Total Scope 3 1,876 593  Gas   Diesel  519    Total UK energy consumption 66,464 78,140   297          Scope 3 emissions            Intensity measurement     Gresham House Energy Storage Fund plc (GRID) 59 Financial Statements Additional Information Annual Report Future developments  page 6. Engagement with stakeholders  page 49. Post balance sheet events  Accounts on page 113. Statement as to disclosure of information to the Auditor        to the Auditor.  John Leggate CBE, FREng Chair  Gresham House Energy Storage Fund plc (GRID)60 Annual Report Financial Statements Additional Information     opinion is included in their report on page 80. The Annual Remuneration Statement        page 74. Remuneration Policy                      as a Director.              Articles and their appointment letters. No Director has a   in accordance with the Articles and without compensation.           Recruitment  recruitment purposes. Directors’ Appointments       Directors Remuneration Report The Board has prepared the Directors’ Remuneration Report for the period to 31 December 2023 which has been prepared in accordance with the requirements of the Large and Medium- sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI2008/410) and the Companies Act 2006. 61Gresham House Energy Storage Fund plc (GRID)       these agreements. The Annual Remuneration Report   page 74. 2022 Fixed salary and fees Period from 01/01/22 to 31/12/22 £ Total variable remuneration Period from 01/01/22 to 31/12/22 £ Total remuneration (xed and variable) Period from 01/01/22 to 31/12/22 £     Duncan Neale                 Total xed remuneration 256,181 - 256,181 Directors’ remuneration and interests (audited)    2023 Fixed salary and fees Period from 01/01/23 to 31/12/23 £ Total variable remuneration Period from 01/01/23 to 31/12/23 £ Total remuneration Period from 01/01/23 to 31/12/23 £     Duncan Neale                Total xed remuneration 322,276 - 322,276 2023 (unaudited) Percentage increase from 24 August 2018 to 31 December 2020 on salary annual fees Percentage increase from 31 December 2010 to 31 December 2021 on salary annual fees Percentage increase from 31 December 2021 to 31 December 2022 on salary annual fees Percentage increase from 31 December 2022 to 31 December 2023 on salary and annual fees      Duncan Neale                N/A N/A   Gresham House Energy Storage Fund plc (GRID)62 Annual Report Financial Statements Additional Information    Directors As at the date of this report 26 April 2024 As at 31 Dec 2023    Duncan Neale                2023/2024 remuneration         Consideration of shareholders’ views      Statement of voting at the 2023 Annual General Meeting   shown in the table below: Resolution to approve Directors’ Remuneration Report Votes %    Votes against  0.02    issued share capital 57.94 Votes withheld   ** A vote withheld is not a vote in law and is not counted in the      the table below: Resolution to approve the Company’s Remuneration Policy Votes %    Votes against  0.54    issued share capital  Votes withheld   ** A vote withheld is not a vote in law and is not counted in the    Gresham House Energy Storage Fund plc (GRID) 63 Financial Statements Additional Information Annual Report Payments to past Directors or for loss of oce    Performance graph         This graph has been chosen as a comparison as it is a    Relative importance of spend on pay     Payments made during the year ended 31 December 2023 £ Payments made during the year ended 31 December 2022 £  Directors   Dividends paid to shareholders       Total 40,815,160 34,525,815   David Stevenson Chair of the Remuneration Committee  GRID vs FTSE All Share Total Return 70 90 110 130 150 170 190 210 230 Nov- 18 Jan-19 Mar-19 May- 19 Jul-19 Sep-19 Nov- 19 Jan-20 Mar-20 May- 20 Jul-20 Sep-20 Nov- 20 Jan-21 Mar-21 May- 21 Jul-21 Sep-21 Nov- 21 Jan-22 Mar-22 May- 22 Jul-22 Sep-22 Nov- 22 Jan-23 Mar-23 May- 23 Jul-23 Sep-23 Nov- 23 GRID - Share price total return GRID - Nav Total Return FTSE All Share Total Return Gresham House Energy Storage Fund plc (GRID)64 Annual Report Financial Statements Additional Information             Capital structure and voting rights   page 111.                     Board leadership and purpose       targeted dividends and NAV total return. Further discussion  page 39.   considers this culture aligned with the strategic purpose      page 49          page 76. Chair        and their interests. Corporate Governance Report On behalf of the Board, I am pleased to introduce the Company’s Corporate Governance report for the period ended 31 December 2023. In the year, the Board has considered the Principles and Provisions of the AIC Code of Corporate Governance (AIC Code). The AIC Code addresses the Principles and Provisions set out in the UK Corporate Governance Code (the UK Code), as well as setting out additional Provisions on issues that are of specic relevance to Gresham House Energy Storage Fund plc. 65Gresham House Energy Storage Fund plc (GRID) Composition and succession        Director are both male.            Division of responsibilities Matters reserved to the Board                     Gresham House Energy Storage Fund plc (GRID)66 Annual Report Financial Statements Additional Information                                      page 78.   Gresham House Energy Storage Fund plc (GRID) 67 Financial Statements Additional Information Annual Report Board committees       December 2022. Board and committee meetings The table on page 69            ad hoc meetings and attendance was in line with the          –  –  –  –   –   –     –  –  –       –  –  Engagement with shareholders                  Gresham House Energy Storage Fund plc (GRID)68 Annual Report Financial Statements Additional Information       poll being called.        shareholders in the period. Remuneration    page 61.   John Leggate, CBE, FREng Chair  Quarterly Board meetings Ad Hoc Board Meetings Audit Committee Management Engagement Committee Nomination Committee Remuneration Committee (4 held)  (3 held) (1 held) (1 held) (1 held)  4  3 1 1 1 Duncan Neale 4 21 3 1 1 1  4 22 3 1 1 1  4 20 3 1 1 1  4 21 2 1 1 1 Gresham House Energy Storage Fund plc (GRID) 69 Annual Report Financial Statements Additional Information     Audit Committee composition           and the Auditor.         Terms of reference     Principal responsibilities    1    2      3      4    5    6        responsibilities. Financial reporting        Audit Committee Report The Audit Committee plays an integral role in reviewing and challenging the Company’s nancial modelling, nancial reporting, key nancial controls, and risk management framework. 70 Gresham House Energy Storage Fund plc (GRID)       liabilities are appropriate.       and considers whether the accounting policies adopted are appropriate.      Annual Accounts.        Going concern and viability  page 42  was well positioned to continue to operate and meet its  Key accounting judgements and estimates                                  Auditor independence, objectivity and eectiveness    and other partners and Directors conducting the audit had     as Auditor and agreed that the Auditor had adhered to                  the 2024 audit.    Gresham House Energy Storage Fund plc (GRID) 71 Financial Statements Additional Information Annual Report Internal controls and risk management systems   1      2    3   4   5 review and approve the statements included in the    controls on an annual basis with the last review being          concern assessment on page 42.            Whistleblowing            during the period. Gresham House Energy Storage Fund plc (GRID)72 Annual Report Financial Statements Additional Information External audit            guidance in this regard.  services during the period.       Internal audit         Financial reporting  page 56   page 80. Audit Committee evaluation        Duncan Neale Chair of the Audit Committee  Gresham House Energy Storage Fund plc (GRID) 73 Financial Statements Additional Information Annual Report Remuneration Committee composition                Terms of reference     Principal responsibilities        remuneration consultants. Remuneration Committee Report The Remuneration Committee assists the Board to full its responsibility to ensure the Remuneration policy and practises of the Company reward the Non-Executive directors fairly and responsibly. 74 Gresham House Energy Storage Fund plc (GRID) Review of the Company’s remuneration policy        Review of Directors’ remuneration         Director 2023 Fee 2024 Fee     Duncan Neale                         Committee evaluation        David Stevenson Chair of the Remuneration Committee  Gresham House Energy Storage Fund plc (GRID) 75 Annual Report Financial Statements Additional Information Nomination Committee composition            has considered it appropriate to have all Directors serve on  Terms of reference    Principal responsibilities              Composition, succession and evaluation Composition             page 51.           each Director and the commitment involved in service        Nomination Committee Report The Nomination Committee assists the Board in ensuring there is a formal, rigorous and transparent procedure of reviewing Board and Committee composition. 76 Gresham House Energy Storage Fund plc (GRID) Board evaluation             The evaluation detected consistent themes across            Re-election and succession                an annual basis. Diversity                   independent recruitment consultant to ensure a wide pool         Cathy Pitt Chair of the Nomination Committee  Gresham House Energy Storage Fund plc (GRID) 77 Financial Statements Additional Information Annual Report         Management Engagement Committee composition        once during the period. This meeting was also attended     has considered it appropriate to have all Directors serve on  Terms of reference      Principal responsibilities  responsibilities include:                      shareholders in the annual report. Management Engagement Committee Report Building on its work during 2022, the Management Engagement Committee continued to work with the Investment Manager and key service providers to ensure that the Company had a robust system of internal nancial controls and a clear risk management procedure. Gresham House Energy Storage Fund plc (GRID)78     reviewing and considering the appointment and     Performance of the Investment Manager             its committees.       also noted the additional resources being added to the              Performance of key service providers   there were no issues to report.        Committee evaluation        Isabel Liu Chair of the Management Engagement Committee during the reporting period  Gresham House Energy Storage Fund plc (GRID) 79 Annual Report Financial Statements Additional Information Opinion on the nancial statements                     accounting standards. Basis for opinion        opinion is consistent with the additional report to the audit committee. Independence                Conclusions relating to going concern                                                 and covenants in place in particular in the revised   Independent Auditor’s Report to the Members of Gresham House Energy Storage Fund plc 80 Gresham House Energy Storage Fund plc (GRID)  reviewing the covenants which are relevant to the debt                     with respect to going concern are described in the relevant  Overview Key audit matters 2023 2022   investments þ þ Materiality  statements as a whole       An overview of the scope of our audit        material misstatement. Key audit matters            on these matters. Gresham House Energy Storage Fund plc (GRID) 81 Financial Statements Additional Information Annual Report Key audit matter How the scope of our audit addressed the key audit matter   investments  on page 99 and Note 17 on page 102  statements.     as described in the accounting      estimate where there is an     is remunerated based on the          outputs in the model moved  independent model audit has                                                                them to understand the model assumptions and how the           committed we challenged the appropriate valuation through    Gresham House Energy Storage Fund plc (GRID)82 Annual Report Financial Statements Additional Information Our application of materiality                   Company nancial statements 2023 2022 Materiality           statements.          percentage applied         Key audit matter How the scope of our audit addressed the key audit matter   investments (continued)                                Key observations:   valuation to be appropriate. Gresham House Energy Storage Fund plc (GRID) 83 Financial Statements Additional Information Annual Report Specic materiality           Reporting threshold      Other information               whether this gives rise to a material misstatement in the      Other Companies Act 2006 reporting    opinions and matters as described below.   report             in accordance with applicable    environment obtained in the course  material misstatements in the strategic   remuneration  remuneration report to be audited has    which we        in our opinion:         remuneration report to be audited are not in agreement with the accounting       we have not received all the   Gresham House Energy Storage Fund plc (GRID)84 Annual Report Financial Statements Additional Information Responsibilities of Directors           related to going concern and using the going concern basis   alternative but to do so. Auditor’s responsibilities for the audit of the nancial statements      not a guarantee that an audit conducted in accordance       Extent to which the audit was capable of detecting irregularities, including fraud       detailed below:     determined that the relevant laws and regulations               approach to governance.                          procedures relating to: –  –        discussion amongst the engagement team as to how and              controls over management override       Gresham House Energy Storage Fund plc (GRID) 85 Financial Statements Additional Information Annual Report      agreeing to supporting documentation and evaluating          team members who were all deemed to have appropriate   regulations throughout the audit.       misrepresentations or through collusion. There are inherent       www.frc.org. uk/auditorsresponsibilities  Use of our report           Marc Reinecke (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor     Gresham House Energy Storage Fund plc (GRID)86 Annual Report Financial Statements Additional Information     page 91  Statement of Comprehensive Income For the year ended 31 December 2022 Note Revenue (£) Capital (£) Total (£)  7    Other income    Total income 33,615,501 191,828,651 225,444,152              Total administrative and other expenses (8,306,652) - (8,306,652) Prot before tax 25,308,849 191,828,651 217,137,500  9    Prot and total comprehensive income for the year 25,308,849 191,828,651 217,137,500  10 5.07  43.53 For the year ended 31 December 2023 Company number 11535957 For the year ended 31 December 2023 Note Revenue (£) Capital (£) Total (£)  7    Other income    Total income 46,648,850 (146,752,282) (100,103,432)           Total administrative and other expenses (9,862,356) (145,112) (10,007,468) Prot / (loss) before tax 36,786,494 (146, 897,394) (110,110,90 0)  9    Prot / (loss) and total comprehensive income (loss) for the year 36,786,494 (146, 897,394) (110,110,90 0)  10    87 Gresham House Energy Storage Fund plc (GRID)   John Leggate CBE, FREng Chair   The notes starting on page 91 Statement of Financial Position As at the year ended 31 December 2023 Company number 11535957 Note 31 December 2023 (£) 31 December 2022 (£) Non-current assets  11   Current assets  13   Trade and other receivables 14    Total current assets 14,598,823 7,545,190 Total assets 742,580,517 842,316,682   15   Total net assets 740,147,500 841,745,662   20    20    20    20    20    20             Total shareholders' equity 740,147,500 841,745,662  19 129.07 155.51 88 Gresham House Energy Storage Fund plc (GRID) Statement of Changes in Equity For the year ended 31 December 2023 Note Share capital (£) Share premium (£) Merger relief reserve (£) Capital reduction reserve (£) Capital reserve (£) Revenue reserve (£) Total shareholders' equity (£)            Total comprehensive               Transactions with owners:  issued at a premium  20         20        Dividends paid 20        Shareholders’ equity at 31 December 2023 5,734,447 543,915,072 13,299,017 3,892,537 120,353,097 52,953,330 740,147,500   The notes starting on page 91 Note Share capital (£) Share premium (£) Merger relief reserve (£) Capital reduction reserve (£) Capital reserve (£) Revenue reserve (£) Total shareholders' equity (£)          Total comprehensive           Transactions with owners:  issued at a premium  20         20        Dividends paid 20        Shareholders’ equity at 31 December 2022 5,412,904 495,230,993 13,299,017 3,892,537 267,250,491 56,659,720 841,745,662 89Gresham House Energy Storage Fund plc (GRID) The notes starting on page 91 Statement of Cash Flows For the year ended 31 December 2023 Note 31 December 2023 (£) 31 December 2022 (£)         7               Net cash used in operating activities (7,916,097) ( 7, 369,117)             Net cash received from / (used in) investing activities 6,149,380 (220,415,593)   20    20   Dividends paid 20   Net cash inow from nancing activities 8,512,738 112,937,121 Net increase / (decrease) in cash and cash equivalents for the year 6,746,021 (114,847,589)     Cash and cash equivalents at the end of the year 14,073,513 7,327,492 90 Gresham House Energy Storage Fund plc (GRID) 1 General information            2 Basis of preparation Statement of Compliance         Functional and presentation currency   Going Concern     page 8      Notes to the Financial Statements For the year ended 31 December 2023 91Gresham House Energy Storage Fund plc (GRID)       page 6page 10        1    2  to the base case.             3 Signicant accounting judgements, estimates and assumptions      Assessment as an investment entity     a   b   c  92 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information                  Assessment of the MidCo as an investment entity         Investment Manager not a related party:      Valuation of investments in subsidiaries     4 New standards, amendments and interpretations published Adopted:       93 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information   Not yet adopted:              5 Summary of signicant accounting policies  Segmental information   Income and expenses (excluding investments)      Net gain or loss on investments at fair value through prot and loss   Other income  Taxation    94 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information         Investment in subsidiaries          Financial instruments   Financial assets      Financial assets measured at amortised cost     Cash and cash equivalents   Trade and other receivables   Financial liabilities measured at amortised cost   95 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Trade and other payables  Financial asset measured at fair value through prot or loss (FVPL)  a   b   c      Recognition and derecognition     Dividends   Equity    Fair value measurement and hierarchy            is unobservable.    96 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information   detail in Note 17. 6 Fees and expenses Accounting, secretarial and Directors          AIFM           end (2022: nil).        7 Net gain on investments at fair value through the prot and loss 31 December 2023 (£) 31 December 2022 (£)  loss       (101,294,626) 224,696,934 97 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information 8 Administrative and other expenses 31 December 2023 (£) 31 December 2022 (£)          statements)                          9,075,204 7,592,943 9 Taxation      31 December 2023 (£) 31 December 2022 (£)                  loss         Tax charge for the year - - 10 Earnings per Ordinary Share    Revenue Capital 31 December 2023 Total              Prot / (loss) per share (basic and diluted) – pence 6.57 (26.22) (19.65) 98 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Revenue Capital 31 December 2022 Total         Prot per share (basic and diluted) – pence 5.07 38.46 43.53 11 Investments in subsidiaries at fair value through prot or loss    restrictions in place in passing monies up the structure. Immediate parent Place of business Registered oce Percentage ownership Gresham House  Holdings plc   th               31 December 2023 (£) 31 December 2022 (£)            Total equity and loans 727,981,694 834,771,492 Reconciliation 31 December 2023 (£) 31 December 2022 (£) Opening balance       Add: loans advanced      Add: accrued interest on loans       Closing balance 727,981,694 834,771,492     99 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Further analysis    Percentage ownership Total Investment 31 December 2023 31 December 2022 31 December 2023 (£) 31 December 2022 (£)                                                                                                                                            Investments in subsidiaries – subtotal 840,178, 892 851,508,101    Total investments 840,178, 892 855,652,348    Total investment in MidCo 727,981,694 834,771,492     100 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Working capital in MidCo 31 December 2023 (£) 31 December 2022 (£)    Trade and other receivables                  (112,197,198) (20,880,856) 12 Loans receivable  subsidiaries – see Note 11. 13 Cash and cash equivalents 31 December 2023 (£) 31 December 2022 (£)         14,073,513 7,327,492 14 Trade and other receivables 31 December 2023 (£) 31 December 2022 (£)    Accrued income    VAT receivable   525,310 217,698 15 Trade and other payables 31 December 2023 (£) 31 December 2022 (£)       Other accruals   2,433,017 571,020 101 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information 16 Categories of nancial instruments 31 December 2023 (£) 31 December 2022 (£) Financial assets Financial assets at amortised cost:    Trade and other receivables        Total nancial assets 742,366,435 842,246,286 Financial liabilities Financial liabilities at amortised cost:    Net nancial assets 739,933,418 841,675,266      17 Fair Value measurement Valuation approach and methodology       Valuation process     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   b  c  d  e  f  g  h  i  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     103 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Sensitivity analysis      percentage changes in revenue overall. Investment Project Valuation technique Signicant inputs description Sensitivity Estimated eect on fair value 31 December 2023 (£) Estimated eect on fair value 31 December 2022 (£)     Discount rate                  Discount rate                  Discount rate                    Discount rate                    Discount rate                    Discount rate                   Discount rate              104 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Investment Project Valuation technique Signicant inputs description Sensitivity Estimated eect on fair value 31 December 2023 (£) Estimated eect on fair value 31 December 2022 (£)     Discount rate                   Discount rate                    Discount rate                  Discount rate                 Discount rate                Nevendon  Discount rate                  Discount rate                 Discount rate                   Discount rate                105 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Investment Project Valuation technique Signicant inputs description Sensitivity Estimated eect on fair value 31 December 2023 (£) Estimated eect on fair value 31 December 2022 (£) Penwortham  Penwortham  Discount rate                     Discount rate                Arbroath  Discount rate                 Grendon  Discount rate                      Discount rate                   Discount rate                      Discount rate                   Discount rate                Greengridpower1    Discount rate     n/a      n/a   Angus  Discount rate                  106 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Portfolio Sensitivity of RPI Sensitivity Estimated eect on fair value 31 December 2023 (£) Estimated eect on fair value 31 December 2022 (£)               31 December 2023 Level 1 (£) Level 2 (£) Level 3 (£)     - - 727,981,694 31 December 2022 Level 1 (£) Level 2 (£) Level 3 (£)     - - 834,771,492 Valuation of nancial instruments   18 Financial risk management  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 page 10. Credit risk               Liquidity risk      108 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information               As at 31 December 2023 <1 year (£) 1 to 2 years (£) 2 to 5 years (£) >5 years (£) Total (£) Financial assets       Trade and other receivables (Note 14)              Total nancial assets 14,384,741 - - 727,981,694 742,366,435 Financial liabilities Financial liabilities at amortised cost       Total nancial liabilities 2,433,017 - - - 2,433,017 As at 31 December 2022 <1 year (£) 1 to 2 years (£) 2 to 5 years (£) >5 years (£) Total (£) Financial assets       Trade and other receivables (Note 14)              Total nancial assets 7,474,794 834,771,492 842,246,286 Financial liabilities Financial liabilities at amortised cost       Total nancial liabilities 571,020 - - - 571,020  109Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information Market risk           Interest rate risk       interest rate hedging. Currency risk     Capital risk management    19 Net Asset Value (NAV) per Ordinary Share    are identical. 31 December 2023 31 December 2022          129.07 155.51 110 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information 20 Shareholder's equity Ordinary Shares number Share capital (£) Share premium reserve (£) Merger relief reserve (£) Capital reduction reserve (£) Total (£) Allotted and issued share capital As at 31 December 2022              573,444,694 5,734,447 544,909,450 13,299,017 3,892,537 567,835,451        As at 31 December 2023 573,444,694 5,734,447 543,915,072 13,299,017 3,892,537 566,841,073 Ordinary Shares number Share capital (£) Share premium reserve (£) Merger relief reserve (£) Capital reduction reserve (£) Total (£) Allotted and issued share capital As at 31 December 2021                541,290,353 5,412,904 498,024,236 13,299,017 38,162,172 554,898,329        Dividends paid       As at 31 December 2022 541,290,353 5,412,904 495,230,993 13,299,017 3,892,537 517,835,451 Share capital  Share premium   Merger relief reserve  Capital reduction reserve      Share capital, Share premium account and Capital reduction reserve    111 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information   Revenue reserve   Capital reserve   Dividends For the year ending 31 December 2023 Period in relation to which dividend was paid Announcement date Ex-dividend date Payment date Amount per Ordinary Share Total amount       1 April to 30 June 2023   2023  2023    2023 17 November 2023 7 December 2023 21 December 2023   For the year ending 31 December 2022 Period in relation to which dividend was paid Announcement date Ex-dividend date Payment date Amount per Ordinary Share Total amount     1.75 pence  1 April to 30 June 2022    1.75 pence   2022 31 October 2022 24 November 2022  2022 1.75 pence  1 October to 31 December 2022    1.75 pence     21 Cash and non-cash ow items   112 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information 22 Transactions with related parties and other signicant contracts    Directors 31 December 2023 (£) 31 December 2022 (£)       Total key management personnel 347,582 287,466  page 61. page 61. No     Loans to related parties  31 December 2023 (£) 31 December 2022 (£) Principal advanced       Total loans 613,781,184 573,818,703 23 Capital commitments  24 Post balance sheet events         113 Gresham House Energy Storage Fund plc (GRID) Annual Report Financial Statements Additional Information 1 Dividend per Ordinary Share  Dividend period: 12 months to 31 December 2023 Dividend paid per share (£) Number of shares on dividend payment date Total dividend paid (£)          Q3 2023 (declared 17 November 2023)     0.055 31,020,302 Dividend period: 12 months to 31 December 2022 Dividend paid per share (£) Number of shares on dividend payment date Total dividend paid (£)  0.0175       0.0175   Q3 2022 (declared 31 October 2022) 0.0175    0.0175   0.0700 36,079,979 2 Ordinary Share price total return   31 December 2023 (pence) 31 December 2022 (pence)  109.00    23.75 Dividend reinvestment impact 1.92 11.10  (100.00) (100.00) Ordinary Share price total return since inception 40.10 96.35 Ordinary Share price total return since inception % 40.1% 96.4% Alternative Performance Measures For the period from 1 January 2023 to 31 December 2023 114 Gresham House Energy Storage Fund plc (GRID) 3 Net asset value (NAV) per Ordinary Share 31 December 2023 31 December 2022        NAV per share (pence) – Basic and diluted 129.07 155.51 4 NAV per Ordinary Share total return for the period   to shareholders. 31 December 2023 (pence) 31 December 2022 (pence)  129.07 155.51   23.75 Dividend reinvestment impact 9.77      reinvestment   NAV total return for the year (24.85) 55.24 NAV per Ordinary Share total return for the year (12.88%) 40.14%   5 Gross asset value (GAV)  31 December 2023 (£’000) 31 December 2022 (£’000)        GAV (B) 852,581 902,317    115 Gresham House Energy Storage Fund plc (GRID) Additional Information Financial Statements Annual Report 6 Ongoing charges gure (OCF)   31 December 2023 (£'000) 31 December 2022 (£'000)      714  53   343      322   551 239 Total expenses 10,007 8,307  (145) (23) Total ongoing expenses (A) 9,862 8,284    Ongoing charges for the year (A / B) 1.19% 1.18% 7 Operational Dividend Cover    31 December 2023 (£'000) 31 December 2022 (£'000)       Net earnings before interest 15,934 40,504   312   705       Net earnings for Operational Dividend Cover calculation (A) 7,74 8 38,669       Dividends declared by the Company in respect of the period (B) 31,020 36,080 Operational Dividend cover (A / B) 0.25x 1.07x 8 Dividend yield  31 December 2023 31 December 2022  5.51 7.0 0  109.00  Dividend yield for the period 5.1% 4.3% 116 Gresham House Energy Storage Fund plc (GRID) Additional Information Financial Statements Annual Report 9 Operational capacity of the portfolio  31 December 2023 31 December 2022    117 Gresham House Energy Storage Fund plc (GRID) Additional Information Financial Statements Annual Report Company Information Non-Executive Directors   Duncan Neale   Registered oce      Investment Manager and AIFM     Corporate Broker and Financial Advisor     Tax Advisor     Independent Auditor     Administrator and Secretary       Registrar and Receiving Agent  The Pavilions    Legal Adviser     Depositary     Investment Valuer      118 Gresham House Energy Storage Fund plc (GRID) Asset Optimisation (Trading)  in order to capture a spread between the high and low      Asymmetric   AUM   Balancing Mechanism (BM)            Balancing services National Grid procure services to balance demand and      Demand side response           nationalgrideso.com/balancing-services Black start       nationalgrideso.com/balancing-services/system- security-services/black-start/ Capacity Market (CM)   Combined Cycle Gas Turbine (CCGT)  turbine with a steam turbine. The design uses a gas turbine   Curtailment        are times when generators are paid to curtail their output  nationalgrideso.com/news/grounds-constraint Dividend Yield  current share price. EBITDA of underlying group companies     period have their earnings included here. Transactions  recognised once the transaction is completed. Glossary 119Gresham House Energy Storage Fund plc (GRID)    to shareholders. Electricity System Operator (ESO)     nationalgrideso.com/ Engineering, Procurement and Construction (EPC) Contract    Engineering, Procurement and Construction Management (EPCM) Contract    Frequency Response services (FR)                nationalgrideso.com/balancing-services Gross Asset Value (GAV)    International Financial Reporting Standards (IFRS)     Liquidated Damages (LD)              Load Factors    Net Asset Value (NAV) per Ordinary Share   measure to understand the capital return to shareholders. Net Imbalance Volume (NIV)    NAV Total Return   dividends paid to shareholders.   shareholders are reinvested at NAV at the time the shares      Ongoing Charges Figure (OCF)        NAV and annualised. 120 Gresham House Energy Storage Fund plc (GRID) Additional Information Financial Statements Annual Report Operational Dividend Cover               income is included. Ordinary Share  Ordinary Share price total return   dividends paid to shareholders.   to shareholders are reinvested in the shares at the time the      Proving Period      Seed Assets   Skip rates   there is a cheaper alternative to achieving the same  Site uptime     Symmetrical   System inertia         nationalgrideso.com/information-about-great-britains- energy-system-and-electricity-system-operator-eso/ technical-terms-explained TRIADs           nationalgrideso.com/news/triads-why- three-magic-number 121 Gresham House Energy Storage Fund plc (GRID) Additional Information Financial Statements Annual Report 122 Gresham House Energy Storage Fund plc (GRID) Periodic (Annual) Disclosures - Annex IV (EU) 2022/1288)   Product name:      Sustainable investment means an investment  that contributes to an environmental or social  the investment does not  environmental or social   good governance practices. Environmental and/or social characteristics Does this nancial product have a sustainable investment objective? Yes No        investments The EU Taxonomy is a    environmentally sustainable economic activities.   sustainable economic  investments with an  might be aligned with the         in economic activities that do not    in economic activities that do        investments To what extent were the environmental and/or social characteristics promoted by this nancial product met?              123Gresham House Energy Storage Fund plc (GRID) How did the sustainability indicators perform? Sustainability indicators measure how the environmental or social characteristics promoted  attained.                    Indicator 2022 2023  550      477     )          activities.   What were the top investments of this nancial product? The list includes the investments constituting the greatest proportion of investments    2023 Largest investments Sector % of portfolio by value at 31 December 2023 Country          Grendon                                 Additional Information Financial Statements Annual Report 124 Gresham House Energy Storage Fund plc (GRID) What was the proportion of sustainability-related investments? What was the asset allocation? Asset allocation describes        #1 Aligned with E/S characteristics  product. #2 Other   investments. In which economic sectors were the investments made?     turnover   capital expenditure      operational expenditure   investee companies. To what extent were the sustainable investments with an environmental objective aligned with the EU Taxonomy? Did the nancial product invest in fossil gas and/or nuclear energy related activities complying with the EU Taxonomy? Yes:  No:        98% 2% Additional Information Financial Statements Annual Report 125Gresham House Energy Storage Fund plc (GRID) Enabling activities enable other activities  contribution to an  Transitional activities are activities carbon alternatives are not  others have greenhouse gas emission levels corresponding to the best       product other than sovereign bonds.  What was the share of investments made in transitional and enabling activities?  with an environmental    economic activities under    What was the share of sustainable investments with an environmental objective not aligned with the EU Taxonomy?    What investments were included under “other”, what was their purpose and were there any minimum environmental or social safeguards?       What actions have been taken to meet the environmental and/or social characteristics during the reference period?       emissions impact.         Additional Information Financial Statements Annual Report