Allens has advised Akaysha Energy on the $460 million construction financing of the Elaine battery energy storage system (BESS) to be developed within Victoria’s South West Renewable Energy Zone.
The 311 MW / 1,244 MWh BESS is underpinned by a 15-year virtual tolling agreement with Snowy Hydro, with 220 MW of contracted capacity – the largest four-hour virtual toll arrangement in the Australian market to date.
The financing, provided by a syndicate of eight leading domestic and international banks, demonstrates the growing bankability of standalone batteries, including when supported by virtual offtake arrangements. In addition to the $460 million construction / term facility, the debt package also includes $74 million of letters of credit to support Akaysha's security obligations.
'This transaction is another important development in the Australian energy market. It underscores the increasing importance of stand-alone battery storage projects in the transition to a low-carbon future, and also highlights growing lender confidence in innovative offtake structures such as virtual tolling agreements,' said co-lead Partner Tim Stewart.
'We are proud to have supported Akaysha Energy on this significant transaction and it was fantastic to draw on our market leading project finance and renewables development experience to ensure a successful financial close process. Congratulations to Akaysha Energy and the financiers,' said co-lead Partner Lisa Zhou.
The transaction builds on Allens’ market-leading experience in the energy transition sector, including advising Akaysha Energy on the Orana BESS, as well as advising lenders on the Supernode BESS and Gnarwarre BESS projects. The firm also recently advised ENGIE on a virtual storage agreement with AGL, further cementing its position at the forefront of virtual and other innovative offtake structures in Australia.
Allens legal team
Project Finance
Tim Stewart (co-lead Partner), Lisa Zhou (co-lead Partner), Tim Broune (Senior Associate), Mark Hakeem (Senior Associate), Maya Bahra (Associate), William Tudehope (Lawyer)
Projects & Development and Offtake
Danielle Jones (Partner)