Global law firm Ashurst has advised Akaysha Energy on the project development of the Orana Battery Energy Storage System (BESS) located near Wellington, NSW. The scope of the work included advice with land, planning, procurement, a twelve-year 'virtual toll' offtake agreement with EnergyAustralia and participation in Australian Electricity Market Operator Services Limited's (ASL) Firming Infrastructure Tender, as well as the provision of legal due diligence.
Akaysha's Orana BESS is the largest four-hour BESS in the National Electricity Market (NEM) at 415 MW/1,660 MWh. The project is being developed within the Central West' Orana Renewable Energy Zone', adjacent to the TransGrid substation near Wellington, NSW. The Orana BESS will use Tesla Megapacks as its battery technology, and Consolidated Power Projects will perform the balance the plant works. The Orana BESS is expected to commence commercial operations in 2026.
Success in the tender process saw the Orana BESS awarded a Long-Term Energy Service Agreement (LTESA), an initiative run by the ASL as part of the Capacity Investment Scheme as a means of ensuring revenue security by "topping up" a project's expected revenue from the NEM with subsidy payments.
The virtual toll offtake agreement was secured with EnergyAustralia for 200MW of contracted capacity, making it the largest virtual toll contracted in the NEM to date and one of the first offtake agreements in the NEM to be layered with an existing LTESA. This is also the first of its kind for EnergyAustralia and, as a financial product, will allow it to "notionally" charge and discharge 200MW of a 'virtual battery' within pre-agreed daily bidding parameters, separate from the physical operation of the battery by Akaysha.
The Ashurst team was led by partners Dale Gill and Kate Phillips, who were supported by: partners Bree Miechel and Chris Redden, senior associates Stephen Blair, Kimberley Garth, Robert Gough, Mike Webb and Stephane Centorame, and associates Vanessa Asumugha, Andrew Bennett, Jonathan Chew, Joshua Hetzel, Jack Jones, Sally Judson, Lucinda Merrett, Georgia Pasialis, Suman Prusty, Sasha Stijacic, Thea Walton, Sarah Waring, Lianne Wong and Harrison Xu (Projects & Energy Transition); partners Rebecca Dixon, Tony Hill and Clare Lawrence, consultants Hazel Brasington and Isabelle Laborde, and senior associate Ian Harris (Planning, Access and Environment); partner Kitty Vo, senior associate Jake Saccardo and associate Mary Tran (Real Estate); partners Con Tzerefos and Murray Wheater and associate Gerard McGookin (Corporate Transactions); partner Georgia Quick, senior associate Chrystie Siapkas, and associates Christina Han and Angus Mullins (Dispute Resolution); partner Elke Bremner and senior associate Daniel Richards (Tax); partner Corey McHattan (Financial Regulation); and associate James-Herbert Trumble (Global Loans).
