Innovative 12-year agreement underpins 415MW Orana BESS

As one of Australia’s largest battery energy storage systems enters commercial operation, revenue will be generated through a 12-year virtual tolling agreement between EnergyAustralia and Akaysha Energy.

The 415MW/1660MWh Orana BESS commenced operations on June 26. The virtual tolling arrangement sees EnergyAustralia secure the financial rights to 200MW of the battery’s capacity without owning or operating the asset, allowing it to manage exposure to wholesale electricity price volatility while Akaysha retains ownership and operational control.

EnergyAustralia trading and transition executive Daniel Nugent said the agreement gives the retailer access to the battery’s firming capability while supporting greater renewable energy integration.

“Our virtual tolling agreement with Akaysha gives us access to a large-scale battery’s firming capability and the ability to soak up renewable energy that would otherwise be wasted, without owning or operating the asset ourselves,” Nugent said.

“It’s a model that gets more storage into the market sooner. Agreements like this one sit alongside the batteries we’re building ourselves at Wooreen, Hallett and Mt Piper – different approaches, but all pointed at the same thing: a more flexible, more resilient grid.”

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Located near Wellington in New South Wales’ Central–West Orana Renewable Energy Zone, the facility is among the largest battery assets in the National Electricity Market.

It comes as grid-scale battery storage becomes increasingly important in maintaining grid reliability as coal-fired power stations retire and renewable generation expands. 

Other BESS to have recently commenced commercial operations include Revera Energy’s 150MW/300MWh Bungama energy storage system, which marks developer Wärtsilä’s fourth energy storage project in Australia to become operational.

Neoen Australia recently broke ground on its 215MW/963MWh Culcairn BESS in New South Wales – its first behind-the-meter battery located on a solar farm.