The Centrica share price continued to march further into the uptrend on Friday after the company moved to acquire a 30MW battery storage facility in Scotland. The acquisition of Cragside Energy’s battery storage project has been hailed as one that could unlock the wind energy potential in the North Sea.
The project is scheduled to start operations in mid-2024 after an 8-month construction cycle and will produce enough wind-powered energy to drive 70,000 homes in one hour, with a potential discharge of up to 4 hours daily. This purchase is part of Centrica Energy Assets’ plan to shore up its solar and battery storage assets to 900MW by 2026. The move also comes as the company promotes non-executive director Kevin O’Bryne to the post of Senior Independent Director, replacing Stephen Hester. He leaves after six years on the board.
Centrica is a supporter of a more robust regulatory framework within the UK’s energy sector to insulate its geopolitical influences. Its latest acquisition has made it a toast of investors, aligning the share price movement with the outlook provided by JP Morgan. JP Morgan had provided a 20.4% upside potential on the stock earlier in the month, with a projected price target of 94p. The latest price move brings the stock closer to this target.
Centrica Share Price Outlook
The Centrica share price outlook indicates a push towards 85.78 following the 82.18 resistance line break. If the bulls succeed in uncapping 85.78, the next target comes in at the 30 January 2020 high at 90.30. 93.26 (22 January 2020 high) and 97.12 (9 May 2019 high) are additional price targets to the north that become viable if the Centrica share price activity clears 90.30.
On the flip side, the bears would be looking for a breakdown of the 79.88 price mark, which brings 75.50 into the picture as an immediate downside target. 72.00 (6 January and 2 March 2022 lows) and 69.60 are the immediate southbound targets after this, followed by 65.18 and 58.32 if the correction from the uptrend is steep.