Akaysha locks debt, partial PPA for 415-MW battery in NSW

Akaysha Energy Pty Ltd on Monday said it has clinched a AUD-650-million (USD 440.4m/EUR 404.2m) debt funding deal for its 415-MW/1,660-MWh Orana battery energy storage project in New South Wales, along with an off-take contract for roughly half of the project’s capacity.

The Australian battery energy developer backed by BlackRock Inc (NYSE:BLK) has raised the three-year debt from a lending consortium of 11 domestic and foreign banks, enabling it to move into construction. According to it, the transaction is the largest financing in a standalone battery energy storage system (BESS) project globally.

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The group lenders supporting the project comprises 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.

To be installed near Wellington, the Orana battery will have a four-hour discharge capacity to serve the National Electricity Market (NEM). The complex will deploy Tesla’s Megapack technology. Early works at the site have already been initiated, with all battery units seen to be operational in 2026.

Roughly 200 MW of Orana’s overall capacity is contracted by EnergyAustralia under a virtual toll off-take deal for 12 years. The specific agreement will allow the power retailer to “notionally” charge and discharge 200 MW of a “virtual battery” within pre-agreed daily bidding parameters.

Akaysha currently has over 4 GWh of BESS projects under construction in Australia, including Orana.

(AUD 1.0 = USD 0.678/EUR 0.622)