Western Victoria is set to host a major new battery energy storage system after Akaysha Energy secured a $460 million financing deal.
The company has announced that the project, located at Elaine southeast of Ballarat, is now underway with financing from a consortium of eight banks: BNP Paribas, CIBC, Commonwealth Bank of Australia, ING, Mizuho, MUFG, Sumitomo Mitsui Banking Corporation and Société Générale.
The three-year financing package includes an additional $75 million in letters of credit to support Akaysha’s security obligations. This financing is backed by a 15-year Virtual Tolling Agreement with Snowy Hydro.
The project — the 311MW/1244MWh Elaine BESS — began last month and is being delivered in partnership with Tesla and Consolidated Power Projects.
According to Akaysha Energy, the Elaine BESS will help manage transmission-outage risks, support the integration of more wind and solar into the Australian Energy Market Operator’s National Electricity Market (NEM) and bolster reliable electricity supply in the state.
Situated near the Moorabool, Mt Mercer and Lal Lal wind-farms, Elaine lies on the path of a major 500kW transmission line linking the Moorabool battery outside Geelong.
Akaysha Energy Chief Financial & Investment Officer Andrew Wegman speaking on Akaysha Energy’s first project in Victoria, said it was al about securing Victoria’s energy future.
“Securing this $460 million facility is another important step in delivering our market leading portfolio of large-scale energy storage infrastructure to push forward Australia’s energy transition.
“The strong support from lenders reflects the critical role that battery storage plays in the NEM, and Akaysha Energy’s ability to deliver complex projects at scale. This financing demonstrates how institutional capital continues to play a fundamental role in accelerating Australia’s clean energy build-out. We’re proud to be at the forefront of developing the next generation of energy infrastructure.”
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