Gore Street Secures Two-Year MAG Energy Tolling Agreement for 23.9 MW Battery Storage in Texas, US

Gore Street Energy Storage Fund plc confirmed on 12 October 2026 that it has entered a two-year tolling agreement with MAG Energy Solutions Inc., a North American energy solutions provider.

MAG to Take Over Dispatch of Three Gore Street Assets

The deal places MAG in charge of bidding, scheduling, and dispatch for three of the company's operational Texas assets, Snyder, Sweetwater, and Westover, from 19 October 2026, replacing GSET, the current optimizer.

MAG will pay a fixed toll for the right to operate 80% of the capacity of the three projects, which together total 29.85 MW / 59.7 MWh. The contracted portion stands at 23.9 MW / 47.8 MWh. In return, MAG assumes operation of that share of the portfolio for the full two-year term.

Pricing at a Premium to Recent Texas Earnings

The agreed toll price is approximately USD 76,348.64/MW/year, equivalent to USD 8.72/MW/hour, payable on 80% of each project's capacity and adjusted for asset performance.

The company framed this against current market conditions: its Texas assets averaged roughly USD 19,821.54/MW/year on an annualized basis in the quarter to 30 June 2026, well below the toll rate.

The remaining 20% of capacity retains merchant exposure. MAG will trade this uncontracted share, with the resulting revenue shared between MAG and the company, preserving a route to upside for Gore Street.

Why Contracting Now

The agreement is part of a portfolio-wide effort to diversify revenue. The company said contracts provide a reliable base and limit downside risk, while retained merchant exposure maintains the opportunity for gains.

Contracted revenues already underpin the company's assets in Ireland, Great Britain, and California. Texas was singled out as a market where contracting holds particular value.

The state has been highly cyclical for the fund: revenues hit record highs in 2022-23, driven by summer scarcity pricing and volatility, before rapid growth in installed capacity compressed spreads and pushed revenues down to cycle lows.

Tolling structures, long used in US power markets to give generators predictable income, are becoming more common in battery storage.

Looking beyond the current trough, the company said the longer-term outlook for Texas remains strong, with data centers and industrial electrification expected to drive a sharp rise in demand across the state.

The agreement is intended to support the assets through present conditions while keeping exposure to merchant upside as the market recovers.

Management Commentary

Alex O'Cinneide, CEO of the Investment Manager, said the company had "consistently explored commercial strategies to mitigate downside risk," citing the Resource Adequacy contract in the US and the DS3 contract in Ireland, and noted the tolling agreement had been "several months in the making."

He said it gives the projects stable, contracted revenues and visibility for the next two years while keeping part of the capacity exposed to merchant revenues, allowing the company to "bridge the gap between higher expected returns in Texas in future years and current market conditions."

He also highlighted MAG's deep experience across North American electricity markets.

Forward Revenue Expectations

Based on contracts currently in place, O'Cinneide said the company expects contracted revenue to represent approximately 40% of total revenue over FY26/27

He added that the company "continues to explore similar structures where they add value to the portfolio, complementing our in-house trading, which continues to deliver significant outperformance," and that it looks forward to updating shareholders as these initiatives progress.

Further Information

Additional details are available from Gore Street Investment Management Limited (Alex O'Cinneide / Ben Paulden). Shore Capital and J.P. Morgan Cazenove act as Joint Corporate Brokers, with Burson Buchanan handling media inquiries.