DNV supports AUD 650m financing for Akaysha’s Orana Energy Storage Project in New South Wales, Australia

This project, featuring one of the largest four-hour batteries globally, will add over 415 MW/1,660 MWh of storage capacity to the National Electricity Market (NEM) when it becomes operational in 2026. Four-hour batteries are designed to discharge electricity continuously for four hours or more at maximum capacity, providing crucial support for grid stability and facilitating the integration of renewable energy sources. This milestone project underscores Australia’s commitment to advancing its renewable energy sector. 

The technical due diligence work was provided by DNV’s project engineering and energy storage experts in Australia, Singapore and the UK. The scope covered the major technology, design, grid connection, construction and operations contracts, safety and fire controls, and environmental, ESG, and Equator Principle compliance. With construction about to commence shortly, DNV will also support the construction and commissioning phases of this project as the lender’s engineer. 

DNV’s support provided the eleven-bank lender group with the confidence it needed in the technical elements to close the AUD 650 million debt financing deal in July 2024. This is the second BESS portfolio financing in Australia for Akaysha Energy, following the AUD 250 million BESS portfolio debt financing for the Ulinda and Brendale BESS portfolio announced in April 2024 which DNV also supported. Akaysha Energy, which was acquired in 2022 by global asset management giant BlackRock, has an extensive pipeline of BESS projects in Australia and internationally. 

Projects pave way for more renewables  

“As the APAC region navigates the complexities of an evolving energy matrix, the significance of energy storage and flexibility becomes increasingly critical,” noted Brice Le Gallo, Vice President and Regional Director APAC, Energy Systems at DNV. “Battery Energy Storage Systems (BESS) are not just components of the energy transition; they are the backbone that supports the integration of renewables and the stability of our grids. Securing this Technical Due Diligence work in Australia is further testimony to the value that energy operators assign to DNV’s deep domain knowledge and comprehensive understanding of BESS technology and market dynamics, making us the most trusted independent expert in risk management and assurance for this evolving sector.”  

“We congratulate Akaysha Energy on securing financing for this groundbreaking BESS project, said Matthew Forwood, DNV’s Country Director for Energy Systems in Australia & NZ. Our DNV teams dedicated significant effort to ensure a successful financial close, and it’s gratifying to see our expertise contribute to such a pivotal development in Australia’s clean energy transition. Projects of this scale are crucial for enhancing grid stability and integrating renewable energy into the National Electricity Market. We are honored to have partnered with Akaysha and the lender group, and we look forward to continuing our collaboration on future endeavors.”  

Nick Carter, Akaysha’s CEO and Managing Director says “The Orana project, with its innovative offtake solution and debt financing, is an incredible example to the battery storage market not only in Australia but also globally.” 

“This announcement represents a significant achievement for Akaysha and marks a crucial step in our mission to rapidly deploy mega-scale BESS, enhancing grid stability and energy security while driving Australia’s shift to sustainable energy solutions. This project will significantly bolster the delivery of a stable supply of energy to the broader Australian community and adds to over 4GWh of energy storage projects under construction for Akaysha. I am very proud of the Akaysha team and our project partners such as DNV who have helped close this deal.” 

Energy Storage in Australia 

Australia has emerged as one of the leading BESS markets in the Asia Pacific region, riding on the momentum of a series of high-profile project announcements. Interest in battery storage is closely tied to the expansion of the country’s renewable energy sector and the crucial need of maintaining grid stability. BESS project owners are uniquely positioned to engage in both the wholesale and ancillary service markets, offering a suite of services including frequency reserve, contingency reserve, backup power, and demand side management, while also capitalizing on energy arbitrage opportunities. 

The regulatory landscape for BESS is still evolving. The Australian Energy Market Operator (AEMO) forecasts up to 49 GW/646 GWh of BESS will be required by 2050 in their 2024 Integrated System Plan. To support this goal, the Australian government, via the Australian Renewable Energy Agency (ARENA), is extending financial grants for commercial-scale BESS projects that exceed 70 MW. These fiscal incentives are critical in encouraging the widespread adoption of BESS across the country.