Finance locked in, construction starts at big battery with largest “virtual toll” deal in Australia

Construction has started on a new 1.24 gigawatt hour battery in Victoria, after Akaysha Energy said it had landed a $460 million project finance facility for a project that features the biggest “virtual toll” deal for a four hour battery in Australia.

The Elaine battery will be sized at 311 MW and 1,244 MWh, and is located next to the existing Elaine wind farm in south-west Victoria.

It is the fifth battery storage project for Akaysha, which is also nearing completion of the country’s most powerful battery, the 850 MW and 1680 MWh Waratah battery in NSW, and according to Rystad Energy now has the biggest portfolio of battery projects in Australia at or beyond financial close with more than 6 GWh of storage capacity.

Akaysha is also building the 415 MW, 1660 MWh Orana battery in NSW, and is putting the finishing touches on two small battery projects in Queensland, Brendale and Ulinda Park.

Akaysha says it secured the financing deal from a group of eight banks including Australia’s CBA, and BNP Paribas, CIBC, ING, Mizuho, MUFG, SMBC, and Societe Generale.

The three-year finance package also includes $A75 million of letters of credit to support Akaysha Energy’s security obligations.

The financing is underpinned by a 15-year virtual tolling agreement with Snowy Hydro, the first move into battery storage for the federal owned energy utility that has focused primarily on its controversial Snowy Hydro and Kurri Kurri gas projects.

Akaysha says the Elaine battery will provide system security for the Victoria grid, and support the integration of more wind and solar in a state that is aiming to reach 95 per cent renewables by 2035.

Andrew Wegman, Akaysha’s chief financial and investment officer said the financing demonstrates the ability of the company to deliver complex projects at scale, and the importance of institutional capital

“We’re proud to be at the forefront of developing the next generation of energy infrastructure,” he said in a statement.

Akaysha Energy has also secured underwriting agreements via the federal government’s Capacity Investment Scheme for its 275 MW, 1,100 MWh Deer Park battery project in Victoria, and a 195 MW, 780 MWh expansion of the Ulinda Park battery.

The Elaine battery will use Tesla battery technology and will be built by Consolidated Power Projects. Akaysha CEO Nick Carter was last week named by Time Magazine in its global Climate100 list, along with the Pope and King Charles.

See also Renew Economy’s Big Battery Storage Map of Australia for more information.

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