Allens has advised Akaysha Energy on the $650 million financing of its Orana Battery Energy Storage System (BESS), the largest four-hour BESS in Australia's National Energy Market and one of the largest in the world.
The financing – the largest globally for a BESS – sees Akaysha Energy secure debt from a group of 11 domestic and foreign 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 funding brings the capital invested in Akaysha's Australian energy storage projects to a total of $3 billion, and will finance the construction of Akaysha's Orana BESS project near Wellington, NSW, in the Central West Orana Renewable Energy Zone. The Orana BESS is set to add more than 1660MWh to Australia's National Energy Market.
A 12-year 'virtual toll' offtake agreement with EnergyAustralia has also been secured as part of the financing, allowing EnergyAustralia to 'charge' and 'discharge' a 200MW 'virtual battery’ to manage its price and load commitments, particularly during peak periods. Allens conducted a peer review of the virtual toll offtake agreement as well as advice on 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,' said lead Partner Tim Stewart.
The advice builds on Allens' extensive experience in battery project financings, with the firm having also advised on the Waratah Super BESS, Templers BESS, Koorangie Energy Storage System, Hazelwood BESS and the Bouldercombe Battery Project.
Allens legal team
Banking & Finance
Tim Stewart (lead Partner), Rod Aldus (Partner), Jamie Guthrie (Managing Associate), Flynn O'Byrne-Inglis (Senior Associate), Mark Hakeem (Secondee to Akaysha), Maya Bahra (Lawyer), Avani Agarwal (Graduate Trainee – Qualifying for admission in England & Wales)
Tax
Ellen Thomas (Partner), George Bishop (Senior Associate), Karen Lee (Associate)
Projects & Development
Kate Axup (Partner), Luisa Colosimo (Senior Associate)