One firm described the related $650m financing transaction as "the largest globally for a BESS"
Ashurst and Allens have both assisted Akaysha Energy in relation to its Orana battery energy storage system (BESS).
This includes a $650m financing described by Allens as being “the largest globally for a BESS”.
For this financing, debt was secured from 11 domestic and international banks, including ANZ, Commonwealth Bank, Westpac, BNP Paribas, Canadian Imperial Bank of Commerce, DBS, ING, Mizuho, Rabobank, Siemens Financial Services through Siemens Bank, and SMBC. The proceeds increase the total capital invested in Akaysha's Australian energy storage projects to $3bn.
The financing is set to support the construction of the Orana BESS project near NSW’s Wellington, in the Central West Orana Renewable Energy Zone.
A 12-year “virtual toll” offtake agreement was also reached with EnergyAustralia as part of the financing. The agreement permits EnergyAustralia to “charge” and “discharge” a 200MW “virtual battery” to manage its price and load commitments especially during peak periods, Allens said.
Ashurst noted that the agreement is “the largest virtual toll contracted in the NEM to date and one of the first offtake agreements in the NEM to be layered with an existing [Long-Term Energy Service Agreement]”. The firm also said that the agreement was “the first of its kind for EnergyAustralia”.
Allens’ team initiated a peer review of the agreement and guided the first-to-market lithium carbonate hedging arrangements.
“As Australia's renewable energy generation grows in sophistication, our energy storage solutions are ever more critical. We're delighted to have worked with Akaysha to secure this landmark financing as it continues to advance Australia's energy transition”, Allens lead partner Tim Stewart said.
In addition to also assisting on the offtake agreement, Ashurst’s team pitched in on the Orana BESS’ development with regard to land, planning, procurement, participation in Australian Electricity Market Operator Services Limited's (ASL) Firming Infrastructure Tender, and conducting legal due diligence.
The project secured a Long-Term Energy Service Agreement (LTESA); the LTESA is an initiative in line with the ASL's Capacity Investment Scheme. The scheme aims to ensure revenue security by supplementing a project's expected revenue from the NEM with subsidy payments, Allens said.
The Orana BESS has a capacity of 415 MW/1,660 MWh. It is the biggest four-hour BESS in the country’s National Energy Market (NEM) and is among the largest worldwide. The BESS will utilise Tesla Megapacks for its battery technology, and Consolidated Power Projects will perform the balance the plant works, according to Ashurst.
The BESS is set to kick off commercial operations in 2026.
Spearheading the Ashurst team are partners Dale Gill and Kate Phillips. They received support from partners Bree Miechel and Chris Redden; senior associates Stephen Blair, Kimberley Garth, Robert Gough, Mike Webb, and Stephane Centorame; and associates Vanessa Asumugha, Andrew Bennett, Jonathan Chew, Joshua Hetzel, Jack Jones, Sally Judson, Lucinda Merrett, Georgia Pasialis, Suman Prusty, Sasha Stijacic, Thea Walton, Sarah Waring, Lianne Wong, and Harrison Xu (projects and energy transition). Also pitching in were partners Rebecca Dixon, Tony Hill, and Clare Lawrence; consultants Hazel Brasington and Isabelle Laborde, and senior associate Ian Harris (planning, access, and environment).
Lending additional expertise were partner Kitty Vo, senior associate Jake Saccardo, and associate Mary Tran (real estate); partners Con Tzerefos and Murray Wheater and associate Gerard McGookin (corporate transactions); partner Georgia Quick, senior associate Chrystie Siapkas, and associates Christina Han and Angus Mullins (dispute resolution); partner Elke Bremner and senior associate Daniel Richards (tax); partner Corey McHattan (financial regulation); and associate James-Herbert Trumble (global loans).
The Allens team comprised the following:
Banking and finance
Tax
Projects and development
