Akaysha Energy Secures AU$460 Million for Major Battery Project

Akaysha Energy has successfully obtained AU$460 million (approximately US$299 million) in construction financing for its ambitious 311MW/1,244MWh battery energy storage system (BESS) located in Victoria, Australia. The financing, structured as a non-recourse facility, was arranged through a consortium of eight international and domestic banks, including BNP Paribas, CIBC, Commonwealth Bank of Australia, ING, Mizuho, MUFG, SMBC, and Société Générale.

The financing agreement includes AU$75 million in letters of credit, which will help facilitate Akaysha Energy’s security obligations during the construction phase. Work on the Elaine BESS commenced in October 2025, with Tesla providing the battery technology and Consolidated Power Projects taking charge of engineering, procurement, and construction.

Significant Agreements and Strategic Impact

A vital element of the financing is a 15-year virtual tolling agreement with Snowy Hydro, marking the state-owned generator’s inaugural battery offtake agreement. With a contracted capacity of 220MW, this arrangement constitutes the largest four-hour virtual toll agreement in the Australian market. Additionally, Akaysha Energy has secured multiple offtake deals exceeding 2GWh of battery energy storage across Australia, demonstrating its robust market presence.

The Elaine BESS will be strategically connected to existing transmission infrastructure in southwest Victoria. This positioning is expected to enhance the system’s ability to manage transmission outage risks while supporting the integration of renewable energy sources, notably wind and solar, into the grid.

Institutional Support for Energy Transition

According to Andrew Wegman, Chief Financial and Investment Officer at Akaysha Energy, the financing showcases the ongoing commitment of institutional capital to Australia’s energy transition. “The strong support from lenders reflects the critical role that battery storage plays in the National Electricity Market (NEM), and Akaysha Energy’s ability to deliver complex projects at scale,” Wegman stated.

The Elaine project marks Akaysha Energy’s second major virtual tolling agreement, following a successful 12-year arrangement that was facilitated by AU$650 million in debt financing from eleven domestic and global banks. This achievement underscores the company’s capability in securing large-scale project financing.

Akaysha Energy has positioned itself as a leading developer and operator of utility-scale battery storage systems throughout Australia. Recently, the company celebrated the successful commercial operation of Stage 1 of another significant project.

In a recent interview, Nick Carter, Managing Director and CEO of Akaysha Energy, shared insights into the company’s growth trajectory. The expansion has been bolstered by substantial corporate financing, including a significant agreement secured earlier this year aimed at advancing its BESS project pipeline not only in Australia but also in the United States, Japan, and Germany.

As the demand for renewable energy continues to rise, Akaysha Energy’s initiatives reflect a broader trend towards sustainable energy solutions and infrastructure development, essential for the future of energy consumption and management on a global scale.