Akaysha Energy to build Australia's largest battery storage system
Akaysha Energy, a clean, renewable battery storage solutions firm, has secured the government's Long Term Energy Service Agreement (LTESA) for the building and commissioning of one of Australia's largest battery storage systems.
This significant government contract paves the way for the execution of the Orana Battery Energy Storage System (BESS) located in Wellington NSW, a venture set to anchor private investment in renewable energy storage over the next decade.
Akaysha Energy is poised to deliver Australia's inaugural gigawatt-scale four-hour battery storage solution to the market, a feat which is projected to considerably quicken Australia's progress towards a net-zero emission state.
The company, having been acquired by BlackRock's Climate Infrastructure strategy in 2022, operates with teams established across several global hubs, including Japan, the United States, and East Asia.
The execution of this innovative 415MW/1660MWh utility-grade battery energy storage system is supported by a Long-Term Energy Service Agreement with AEMO Services.
The agreement, incorporating the largest capacity among all projects within the LTESA scheme, promises to drive Australia's shift towards net-zero emissions by facilitating the delivery of advanced energy solutions to the market.
The high-capacity Orana BESS initiative is expected to significantly cut energy costs and provide protection against power outages for consumers and communities. The system, one of the first in Australia to offer a four-hour backup period, will serve to buttress the national energy grid for extended at-risk peak periods. Its large-scale storage capacity could also sustain new renewable energy sources up to 2GW and provide sufficient power for 90,000 homes each day.
Nick Carter, CEO and Managing Director at Akaysha Energy, voiced the company's confidence in the benefits of longer-duration systems such as this four-hour system.
"After proving our capability and commitment with Australia's largest battery storage system, the Waratah BESS, the award of the Orana LTESA will enable us to provide greater certainty and stability of Australia's National Energy Market with another of the country's biggest batteries, delivered with Akaysha Energy's unique approach to planning, construction and operation," Carter said.
According to international research firm Rystad Energy, Australia ranks as one of the most volatile energy grids globally, necessitating a significant increase in energy storage capacity from 2.8GW to 46GW by 2050.
Such growth is expected to be achieved via a mix of utility-grade battery systems and hydro storage. Akaysha Energy is already playing a crucial role in fulfilling this growth demand, as evidenced by planning for 10GWh of energy storage projects, which include the 1680MWh Waratah, 1660MWh Orana BESS, and the four-hour, 1244MWh Elaine BESS in Victoria.
Paul Curnow, Managing Director – Strategy & General Counsel, commended the strategic public policy from the government to boost storage capacity in Australia's National Energy Market.
He stated, "The revenue floor/sharing product enhances, rather than suppresses, the existing over-the-counter (OTC) power purchase agreement market for batteries by helping bridge the pricing gap between two and four-hour battery systems."
This collaboration between private and public sectors to meet ambitious emission reduction targets is a key aspect of the NSW Government's strategy. With a goal to cut emissions by 70% by 2035 compared to 2005 levels, simultaneously aiming to achieve Net Zero by 2050, the government is working diligently to expedite its energy transition through proactive planning and infrastructure developments.
