Sydney, Nov 22: Akaysha Energy has finalized a Long-Term Energy Service Agreement (LTESA) for the development and operation of a cutting-edge 415MW/1660MWh utility-grade battery energy storage system.
Awarded through a competitive tender by AEMO Services, this project, known as the Orana Battery Energy Storage System (BESS), boasts the largest capacity among all projects within the LTESA scheme.
Located in Wellington, NSW, the Orana BESS will operate under a ten-year agreement, providing stability for private investment in renewable energy storage.
This initiative aligns with Akaysha Energy’s commitment to delivering innovative energy solutions, supporting Australia’s transition to a net-zero future.
The Orana BESS is a significant step toward reducing energy costs and enhancing resilience against outages.
The system, one of the first in Australia to offer a four-hour duration, aims to bolster the national energy grid during extended peak periods of demand.
The LTESA, coupled with the BESS, is projected to facilitate up to 2GW of new renewable energy, with sufficient storage capacity to power 90,000 homes daily.
Nick Carter, CEO & Managing Director at Akaysha Energy, expressed confidence in the project’s impact, stating, “The Orana LTESA will enable us to provide greater certainty and stability to 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.”
Akaysha Energy, a key player in Australia’s energy storage landscape, is contributing significantly to the nation’s energy transition. The LTESA model, initiated by the Commonwealth Government through Capacity Investment Scheme (CIS) auctions, is set to be implemented in South Australia and Victoria in early 2024.
Paul Curnow, Managing Director of strategy and general Counsel, highlighted the government’s smart public policy in deploying LTESA and CIS models. He explained, “The revenue floor/sharing product enhances the existing over-the-counter (OTC) power purchase agreement market for batteries, helping bridge the pricing gap and enabling battery operators to innovate in revenue products.”
Akaysha Energy, acquired by BlackRock Private Markets in 2022, is actively engaged in energy storage projects globally, with teams spanning Australia, Japan, the United States, and East Asia.
The Orana BESS aligns with the NSW Government’s goal of achieving a 70 per cent reduction in emissions by 2035 compared to 2005 levels.
Collaboration between the private and public sectors is deemed essential to accelerate energy transition and meet ambitious targets, requiring robust planning and infrastructure support.
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