In the media
Project Financing Akaysha Energy secures first BESS portfolio financing in Australia for A$250 million
Akaysha Energy, has today announced contractual close of a A$250m debt raise with a group of seven banks. The financing provides funding for Akaysha’s Queensland based Ulinda Park and Brendale Battery Energy Storage System (BESS) projects adding more than 700MWh of new energy storage to the National Electricity Market (NEM). The bank group is made up of CBA, DBS, ING, Mizuho, MUFG, Rabobank and SMBC. Akaysha was advised by Azure Capital and Ashurst with HSF acting as lenders’ counsel. Special thanks to the transaction due diligence advisors: DNV, Aurora, Marsh, KPMG and Mazars.
The portfolio facility has a tenor of 3 years and will be used to fund the construction costs for Ulinda Park and Brendale BESS projects. The portfolio financing also provides more than A$100m of Letters of Credit to support the projects’ security obligations.
Andrew Wegman, Managing Director of Finance & Investments at Akaysha delivers the news during an exciting time at the company, as it enters the construction phase of over 4GWh of energy storage projects.
“This financing unlocks capital to be recycled into the construction and development of Akaysha’s extensive pipeline of BESS projects in Australia and internationally. We were pleased to receive very strong support from the local bank market demonstrating their continued commitment to drive the energy transition. This first-of-its-kind BESS portfolio financing is pivotal to supporting the energy transition and improving grid stability. ”
BlackRock, via its Climate Infrastructure franchise, acquired Akaysha in September 2022. Charlie Reid, APAC co-Head of Climate Infrastructure, BlackRock, says,
“We’re pleased to see Akaysha secure a A$250 million portfolio financing to accelerate the development of its BESS projects, Ulinda Park and Brendale, within the NEM. This portfolio will significantly bolster the delivery of a stable supply of energy to the broader Australian community. BlackRock has identified the transition to a low-carbon economy as one of the key mega forces driving investments around the world. It will likely require an investment of around US$200 trillion in capital, presenting a substantial investment challenge. This capital raise represents a significant step towards accelerating that transition, positioning Australia to establish itself as a global renewable superpower.”
The Ulinda Park BESS is being developed adjacent to the Western Downs substation at Hopeland near Chinchilla in Queensland’s Western Downs region. Construction of the first phase of the Ulinda Park project, which will involve the installation of a 155MW / 298 MWh battery featuring a Powin Battery, has begun.
The Brendale BESS is to be built on a site owned by Unity Water, next to the South Pine substation, the central node of Queensland’s electricity grid. Construction of the 205MW / 410MWh Brendale BESS, which will feature Tesla Megapack technology, is expected to start imminently.
Balance of Plant (BoP) will be delivered by Consolidated Power Projects (CPP). The projects will provide energy arbitrage and frequency control ancillary services (FCAS), to support the NEM and its rapid expansion of solar and wind projects leveraging existing transmission infrastructure in the region. The projects are expected to commence commercial operations in 2025. Wegman says, “The Ulinda Park and Brendale BESS projects are an important element of the company’s portfolio in not only Queensland but the NEM more broadly.”
Waratah Super Battery Waratah Super Battery gets technical green light from market operator
The Australian Energy Market Operator (AEMO) has granted Generator Performance Standard (GPS) approval.
This is another important milestone as the Critical State Significant Infrastructure declared project moves steadily towards completion.
It marks the first such approval for such a large battery energy storage project, paving the way for other ‘super batteries’ in Australia’s National Electricity Market.
GPS approval represents a pivotal and complex milestone for any generation project in Australia.
It sets the performance standards that generators and storage projects must meet to ensure stability and reliability of the electrical grid.
Compliance with these standards helps prevent disruptions and ensures smooth integration into existing energy infrastructure.
The successful GPS approval for the Waratah Super Battery eliminates one of the most substantial technical barriers for the project, allowing it to participate in the growing energy storage market in Australia.
The project is on track to be fully operational by August 2025
Quotes attributable to Andrew Kingsmill, Executive Director Network Planning & Technical Advisory at EnergyCo:
“The approval of the Generator Performance Standard is a significant milestone because the project has passed the simulations needed to know that it can successfully connect to the grid later this year.”
Quotes attributable to Nick Carter, CEO of Akaysha Energy
"It's been more than 12 months’ worth of hard effort by the team and AEMO and Transgrid and our consultants Aurecon on this.
“We appreciate the collaboration with eks Energy and Powin. Their commitment to providing local on-ground support in Australia, advanced technology and willingness to work closely with our interconnection partners was critical in securing GPS approval and achieving closure within the required timeframes.
“Connecting energy projects to the Australian grid poses unique challenges due to stringent interconnection standards resulting from a combination of an inherently weak electrical grid, strict performance requirements and high renewable energy penetration.
“The significance is that we now have a clear pathway to get the battery connected.”
Brendale BESS
Akaysha presses go on two hour big battery next to Brisbane sewage works
Akaysha Energy, the battery storage developer backed by global funds management giant BlackRock, is to build a big two hour battery in Brisbane, next to a major sewage works, after reaching a final investment decision on Tuesday.
The announcement comes amid a flood of big battery storage project deals, including two giant eight-hour batteries that won the latest NSW tender for long duration storage, and AGL also reaching FiD on the Liddell 1,000 MWh battery, which will be the biggest in Australia featuring grid forming inverters.
The new Akaysha project is the 205MW, two hour (410 MWh) Brendale battery in Brisbane, to be built on a site owned by Unitywater, next to its Brendale sewage works and the South Pine substation, and which will feature Tesla Megapack technology and be built by Consolidated Power Projects.
Akaysha says the Brendale battery (see artist’s rendition above) will provide ancillary services, energy arbitrage and frequency control services in the market, and says it will help it create innovative off-take agreements. Construction will start in 2024, with operations beginning in 2025.
Akaysha has rapidly built up an impressive portfolio of battery storage projects, with its flagship being the 850 MW, and 1680 MWh Waratah Super Battery, which will play a critical role as a sort of “giant shock absorber” after the anticipated closure of the Eraring coal fired power generator.
The company has also won a contract under the new Capacity Investment Scheme for the Orana four hour battery (415 MW and 1660 MWh) in the central west of NSW, and is also developing the 255 MW (300 MWh) Ulinda Park big battery in Queensland.
Orana BESS
Akaysha Energy wins long-term agreement to build the National Energy Markets first gigawatt-scale four-hour battery energy storage system
Akaysha Energy has been awarded a Long Term Energy Service Agreement (LTESA) to support Financial Close and continue the construction and commissioning of the Orana Battery Energy Storage System (BESS) in NSW, to become one of the largest battery storage systems in Australia.
Sydney, 22 November, 2023
Akaysha Energy has signed a Long-Term Energy Service Agreement which will support the build and operation of a groundbreaking 415MW/1660MWh utility-grade battery energy storage system under a competitive tender from AEMO Services, and features the largest capacity of all projects within the LTESA scheme. The Orana BESS, located in Wellington NSW, will be delivered under a ten-year agreement that ensures certainty for private investment in new renewable energy storage, enabling Akaysha Energy to deliver innovative energy solutions to the market, to accelerate Australia’s transition to net zero.
Projects of this magnitude will have a significant impact on reducing the cost of energy and protection against outages and other events for consumers and communities. The Orana BESS will be one of the first systems in Australia to deliver a four-hour system, significantly increasing the value of utility-grade battery storage to stabilise the national energy grid during longer at-risk peak periods. Combined with the long-term agreement, the BESS will enable up to 2GW of new renewable energy, with enough storage to power 90,000 homes per day.
Nick Carter, Chief Executive Officer & Managing Director at Akaysha Energy said, “After proving our capability and commitment with Australia’s largest battery storage system, the Waratah BESS, the award of the Orana LTESA will enable us to provide greater certainty and stability of Australia’s National Energy Market with another of the country’s biggest batteries, delivered with Akaysha Energy’s unique approach to planning, construction and operation.
"At Akaysha Energy, we are bullish on longer duration systems such as this four-hour system. Our in-house markets modelling, engineering and technical teams have all combined to provide us a strong view that four hours is the new normal for BESS duration in Australia.”
International research firm Rystad Energy recently ranked Australia as one of the most volatile energy grids in the world, estimating energy storage capacity would need to grow from 2.8GW currently to 46GW by 2050 through a mix of utility-grade battery systems and hydro storage to smooth out the volatile grid. Akaysha Energy is already contributing heavily to this need with cumulative 10GWh of energy storage projects under planning, including the 1680MWh Waratah and now 1660MWh Orana BESS, and the four-hour, 1244MWh Elaine BESS in Victoria.
The LTESA model will be rolled out by the Commonwealth Government through its Capacity Investment Scheme (CIS) auctions commencing for South Australia and Victoria in early 2024.
“The LTESA and CIS models demonstrate smart public policy from the government to deliver increased storage capacity into Australia’s National Energy Market.
The revenue floor/sharing product enhances, rather than suppresses, the existing over-the-counter (OTC) power purchase agreement market for batteries by helping bridge the pricing gap between two and four-hour battery systems, thereby enabling battery operators like Akaysha Energy to write new, innovative revenue products on top. This will help build offtake liquidity in the OTC market and lead to longer duration battery storage capacity coming through.”
Paul Curnow, Managing Director – Strategy & General Counsel
Akaysha Energy was acquired by BlackRock Private Markets, via its Climate Infrastructure franchise, in 2022, and has teams around the world including in Australia, Japan, the United States and East Asia.
The goal of the NSW Government is to deliver a 70% cut in emissions by 2035 compared to 2005 levels, and the ability to reach this target and Net Zero by 2050 will require the private and public sector to work together to achieve this common goal. A key piece of this puzzle is for the NSW Government to accelerate energy transition with planning and infrastructure support so that these highly ambitious targets can become a reality in the next 20 years.
[Ends]
Ulinda Park BESS
Akaysha Energy, the Australian battery storage developer backed by global funds giant BlackRock, has reached final investment decision and balance of plant on its 150MW/300MWh Ulinda Park big battery in Queensland.
Akaysha’s first ever project, the Ulinda Park battery energy storage system (BESS) is being developed near to the 750 MW Kogan Creek coal generator in the Western Downs region of Queensland – the country’s biggest single coal unit – where it will support the exit of fossil fuels from the state’s electricity system.
Akaysha CEO and managing director Nick Carter marked the “amazing milestone” on LinkedIn on Wednesday, describing the Ulinda BESS as one of the “unsung heroes” of the company’s portfolio.
“Ulinda Park was our first-ever development at Akaysha Energy right back at the start. So we have a soft spot for it, it’s been a journey,” Carter says in the post.
“The Waratah Super Battery gets a lot of the attention/headlines, but the unsung heroes of the Akaysha Energy battery portfolio will become Ulinda Park BESS and the other large battery developments that are rapidly marching towards FiD across the NEM, accelerating the energy transition.”
In a separate company announcement, Akaysha said construction of the two-hour BESS would begin next month, in partnership with Powin, eks Energy, Consolidated Power Projects, Re2 Capital, Powerlink, Wilson Transformer Company and Renewable Energy Partners.
source: Renew Economy
Waratah Super Battery
EnergyCo formally appointed Akaysha Energy, backed by BlackRock, to deliver an 850 MW / 1680 MWh Battery Energy Storage System (BESS) for the provision of System Integrity Protection Scheme (SIPS) services in NSW, Australia.
Sydney, Australia: Akaysha Energy, BlackRock, EnergyCo, TransGrid (Oct 18, 2022)
Orana BESS lnformation Session
On 17th March 2022 Akaysha held an information session at the Wellington Civic Centre to discuss the Orana BESS near Wellington and answer any questions from the community. As reported in the Wellington & District Leader “The wind doesn’t always blow and the sun doesn’t always shine, so the battery can help manage those intermittencies and also deal with system stability”
Wellington & District Leader - print addition 24th March 2022 (front page)
Wellington Civic Centre - Orana BESS Information Day
Japan - Australia Clean Energy Forum
Akaysha presented at Ashurst’s Japan-Austrailan Clean Energy forum hosted with the Australian Trade and Commission (Austrade) at the Australian Embassy. The forum was an important discussion on the Austrailan energy market, battery technology and the role of BESS in the Australia energy transition.
Elizabeth Cox (Austrade), Paul Curnow (Ashurst), Nick Carter (Akaysha) and Natsuko Ogawa (Ashurst), Source: LinkedIn