Akaysha Energy has announced the closing of AU$650 million financing for its Orana Battery Energy Storage System (BESS) project, which is one of the largest four-hour batteries globally.
The lender group is made up of domestic banks including ANZ, CBA and Westpac, and international banks BNP, Canadian Imperial Bank of Commerce, DBS, ING, Mizuho, Rabobank, Siemens Financial Services through Siemens Bank, and SMBC.
The facility has a tenor of three years and will be used to fund the construction of Akaysha’s latest project, Orana, which is located near Wellington, NSW within the Central West Orana Renewable Energy Zone (REZ).
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Akaysha managing director and chief financial officer Andrew Wegman said, “We are very pleased to announce the successful closing of the debt financing of the Orana project as we move into construction on Akaysha’s first four-hour BESS to date.
“As the largest standalone BESS financing globally, this achievement not only secures the capital for Orana’s construction but also highlights the strong support we have received from both local and international banks, as well as from BlackRock. Their commitment to advancing the energy transition in Australia and internationally has been pivotal to reaching this milestone.
“This milestone is a significant accomplishment for Akaysha and an important step for Australia’s energy transition.”
Central to the debt financing is an innovative 12-year ‘virtual toll’ offtake agreement secured with leading generator and retailer, EnergyAustralia for 200MW of contracted capacity.
This is the first of its kind for EnergyAustralia and, as a financial product, will allow it to notionally charge and discharge 200MW of a virtual battery within pre-agreed daily bidding parameters, separate from the physical operation of the battery by Akaysha.
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EnergyAustralia says the offtake agreement aligns strategically with the Australian customer in mind and ensures the delivery of its energy is both secure and reliable.
Akaysha’s Orana BESS is being developed within the Central West Orana Renewable Energy Zone, adjacent to the Transgrid substation near Wellington, NSW.
Early works have begun on the project, which will feature Tesla Megapack technology and balance of plant will be delivered by Consolidated Power Projects Australia (CPP). The Orana BESS is expected to commence commercial operations in 2026.
