BlackRock-backed Akaysha Energy has secured AU$460 million (US$299 million) in construction financing for its 311MW/1,244MWh Elaine battery energy storage system (BESS) in Victoria, Australia.
The non-recourse construction finance facility was provided by a syndicate of eight international and domestic banks: BNP Paribas, CIBC, Commonwealth Bank of Australia, ING, Mizuho, MUFG, SMBC and Société Générale.
The financing package includes AU$75 million in letters of credit to support Akaysha Energy’s security obligations during the construction phase.
Construction of the Elaine BESS commenced in October 2025, with Tesla serving as the battery technology supplier and Consolidated Power Projects as the engineering, procurement and construction contractor.
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The financing is underpinned by a 15-year virtual tolling agreement with Snowy Hydro, representing the state-owned generator’s first battery offtake agreement.
With a contracted capacity of 220MW, the arrangement constitutes the largest four-hour virtual toll agreement in the Australian market. Snowy Hydro has been active in securing battery storage capacity, with the company signing multiple offtake deals for over 2GWh of battery energy storage across Australia.
Located in southwest Victoria, the Elaine BESS will connect to the National Electricity Market (NEM) through existing transmission infrastructure. The strategic positioning will enable the battery system to manage transmission outage risks and support the integration of renewable energy sources, particularly wind and solar generation, into the grid.
Andrew Wegman, chief financial and investment officer at Akaysha Energy, said the financing demonstrates institutional capital’s continued support for Australia’s energy transition.
“The strong support from lenders reflects the critical role that battery storage plays in the NEM, and Akaysha Energy’s ability to deliver complex projects at scale,” Wegman stated.
The Elaine project represents Akaysha Energy’s second major virtual tolling agreement, following a 12-year, 200MW offtake arrangement with EnergyAustralia for the 415MW Orana BESS.
That agreement was supported by AU$650 million in debt financing from 11 domestic and global banks, demonstrating the company’s track record in securing large-scale project financing.
Akaysha Energy has established itself as a leading developer and operator of utility-scale battery storage systems in Australia. The company recently achieved commercial operation of Stage 1 of the 850MW/1,680MWh Waratah Super Battery.
In an exclusive interview with ESN Premium earlier this year, Nick Carter, managing director and CEO of Akaysha Energy, discussed the development process of the utility-scale BESS.
The company’s expansion has been supported by significant corporate financing, including an AU$300 million corporate debt facility secured earlier this year to accelerate development of its BESS project pipeline across Australia, the United States, Japan and Germany.
