As Europe races to expand renewable energy capacity and strengthen grid stability, large scale battery storage has become one of the continent’s most urgent infrastructure needs. Into this rapidly expanding market, Gore Street Capital has announced the first close of its new GS EU Fund SCSp, marking a significant step in directing long term institutional capital toward battery projects across the European Union.
A Strong First Close With Major Institutional Backers
The fund has secured cornerstone commitments from the European Investment Fund and the Ireland Strategic Investment Fund, alongside contributions from additional institutional partners, strategic investors and family offices. These commitments represent a strong endorsement of Gore Street Capital’s track record in the energy storage sector and underline investor confidence in the growth outlook for European battery assets.
The GS EU Fund SCSp is targeting a final close of five hundred million euro by the end of 2026. Gore Street Capital has confirmed it is already on track for its next interim close, with investor interest driven by declining battery costs and an expanding pipeline of long duration projects.
Building Europe’s Next Generation of Battery Storage
The new fund will prioritise acquiring, constructing and managing battery energy storage system projects with a minimum of eighty per cent exposure to European Union member states. As Europe shifts toward higher renewable penetration, storage is becoming essential for balancing intermittent supply and strengthening energy security.
Gore Street Capital notes that the timing of the fund aligns with a dramatic reduction in battery technology costs due to improved manufacturing efficiencies and economies of scale. These declining costs are making large storage assets more viable across a wider variety of markets.
Longer duration storage is also becoming more attractive as countries adopt capacity schemes that favour flexibility and grid reliability. The fund will target both new build and operational projects in markets with clear revenue frameworks.
A Growing Market Beyond Traditional Hubs
Gore Street Capital is best known for managing the Gore Street Energy Storage Fund, which has historically invested in the United Kingdom and Ireland, with smaller portfolios in Germany, Texas and California. But today, the firm sees its most compelling opportunities in the wider European Union where markets are maturing quickly.
Italy has become one of the most promising regions through its MACSE programme and its capacity market. Poland and Belgium are also attracting interest with multi hour capacity schemes. Many of these projects operate on four hour or even eight hour durations, reflecting the continent’s shift toward storage that supports both daily and seasonal renewable patterns.
Spain and other Southern and Eastern European countries are accelerating development through capital expenditure support packages backed by EU level funding mechanisms including Recovery and Resilience Facility grants.
Meanwhile, the Baltics and Nordics present strong merchant opportunities driven by high ancillary service revenue potential and growing needs for grid flexibility.
Positioning for a Transformative European Decade
Alex O Cinneide, chief executive of the portfolio manager, says the European market is entering a period of major expansion and described the fund as an important step in shaping the next phase of the continent’s energy transition. He emphasised the scale of opportunity emerging across Europe as governments adopt structured procurement schemes and utilities commit to deeper integration of storage into grid operations.
The company first signalled its ambition to expand into new geographies in 2022. Since then, the European battery storage pipeline has accelerated dramatically, driven by security of supply concerns, rising renewable targets and sustained policy support.
Capital Ready for a Surging Storage Market
With demand for grid scale storage increasing across all major EU markets, Gore Street Capital’s new fund positions the firm as one of the region’s largest dedicated investors in battery systems. The early close signals strong institutional appetite for energy storage and provides a substantial runway for the firm to deploy capital as Europe prepares for its largest ever buildout of flexible grid infrastructure.
