Akaysha Energy has secured an A$ 650 million debt financing for the Orana Battery Storage System (BESS) project. As one of the largest 4-hour batteries in the world, it is projected to provide 415MW/1660MWh of storage to the National Electricity Market (NEM). This is a significant milestone in financing with 11 domestic and international banks backing the endeavour, thus marking a momentous step towards improving Australia’s energy security and grid stability in one of the most volatile energy markets in the world.
Akaysha also signed an innovative 12-year virtual toll offtake agreement with EnergyAustralia for 200MW of contracted capacity. Through this agreement, EnergyAustralia can “virtually” charge and discharge 200MW of capacity from the Orana BESS, thereby gaining the flexibility to manage its commitments concerning customer load and price during high-demand periods without the capital investment or operational responsibilities of managing a battery itself.
Marking New Beginnings for Energy Storage in the NEM: Navigating Volatility
The NEM has long been recognised as one of the most volatile electricity markets globally, with prices fluctuating sharply due to its unique market design and the system’s inherent characteristics. According to Pan Galanis, Chief Commercial Officer at Akaysha Energy, volatility is both a curse and a blessing for battery storage systems (BESS).
On the positive side, BESS allows grid operators and developers to capitalise on this volatility. For instance, energy storage systems like the Orana BESS can discharge during high-price events and charge when prices dip, taking advantage of both ends of the price spectrum. Moreover, BESS’s rapid-response capability makes it well-suited to manage both energy and Frequency Control Ancillary Services (FCAS) volatility, an integral process in maintaining grid stability during disruptions.
However, the NEM’s volatility also leads to certain challenges for developers and operators, such as making revenue forecasting more complex due to frequent price fluctuations, compounded over long project lifespans. The immature contract market makes securing long-term offtake agreements more complicated, leaving many projects exposed to market unpredictability. As the market evolves, developers like Akaysha must balance the risks of merchant exposure with the stability of contracted revenues, a strategy that Akaysha has successfully employed in its dealings with EnergyAustralia.
Turning Volatility into Opportunity
Despite these challenges, Akaysha is considered well-positioned to thrive in the NEM’s dynamic and unpredictable environment. As Pan Galanis pointed out in his speech at All-Energy 2024, success in such a volatile market requires vision, agility, and a commitment to innovation. Akaysha has consistently demonstrated these qualities, deploying advanced technology and AI-powered auto-bidding algorithms to optimise market participation and revenue in real-time.
In fact, the Orana BESS project—set to commence commercial operations in 2026—represents a key example of how BESS can solve both volatility and grid challenges. With more than 4GWh of energy storage infrastructure currently being built in Australia, Akaysha is on track to meet the growing demand for renewable energy while also helping to stabilise the grid as more intermittent solar and wind generation comes online.
Partnerships and Innovation: Akaysha’s Path Forward
The Orana BESS project also highlights the importance of strong partnerships. The virtual toll offtake agreement with EnergyAustralia, the largest virtual toll in the NEM to date, is an example of how collaboration can unlock innovative solutions to the challenges of grid storage. By allowing EnergyAustralia to virtually access the capacity of the BESS without the need to own or operate the system, Akaysha has developed a financial product that benefits both parties and aligns with the growing demand for flexible, renewable energy solutions.
With a strong track record of successful partnerships and innovative strategies, Akaysha is not just navigating volatility—they are actively shaping the future of energy storage. With this forward-thinking approach, Akaysha to set the standard for how BESS can help stabilise the grid, reduce costs and support the energy transition on a massive scale.
The Road Ahead: A Cleaner, Smarter Grid
Akaysha’s A$650 million financing for the Orana BESS and its innovative virtual toll offtake deal mark just the beginning of what’s to come. With A$3 billion mobilised into energy storage projects, Akaysha is poised to be a leader in the global energy transition, helping to transform the way we think about energy storage in volatile markets like the NEM.
As the Orana BESS project moves into construction, Akaysha is accelerating efforts to deploy mega-scale energy storage solutions that will contribute to grid stability, energy security, and renewable energy growth—not just in Australia, but on a global scale.
(Learn more about Akaysha Energy’s project here.)
Stay Ahead of the Renewable Energy Transition: Contact an Energy Consultant Now
As the NEM continues to experience high levels of volatility, understanding the energy landscape is essential for organisations aiming to remain resilient in the face of Australia’s increasingly dynamic market. Akaysha’s Orana BESS project serves as a powerful example of how innovative storage solutions can meet the growing demand for clean energy while addressing the complexities of market volatility.
Want to learn more about the future of Australia’s energy grid? Speak with an energy consultant and explore how your business can stay ahead of the curve and align with the evolving renewable energy roadmap. Understanding the opportunities and risks in the NEM is critical for ensuring your organisation is prepared for the challenges and benefits of a cleaner, more dynamic energy future.
Get in touch with the Leading Edge Energy Team at 1300-852-770 or send us an email at admin@leadingedgeenergy.com.au. You may also click the button below to sign up for an obligation-free consultation.
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