Two battery storage offtake agreements have been signed in Australia, representing over 2GWh of storage capacity.
Government-owned energy company Snowy Hydro, which manages the historic Snowy Mountains Hydro-electric Scheme, has finalised a battery storage tolling agreement with BlackRock-backed developer Akaysha Energy.
At the same time, mining giant BHP has secured additional renewable power backed by battery energy storage for its South Australian copper operations.
Snowy Hydro inks 15-year virtual tolling agreement for 1.2GWh BESS
Snowy Hydro has entered into a 15-year virtual tolling agreement with Akaysha Energy for the 311MW/1,244MWh Elaine battery energy storage system (BESS) in Victoria.
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The agreement covers 220MW of the battery storage capacity and represents Snowy Hydro’s first battery offtake deal. According to Akaysha Energy, the contract establishes a “new benchmark for investment-grade battery contracts in Australia” and claims it is the largest 4-hour virtual toll arrangement in the Australian market.
Virtual tolling agreements allow offtakers to access the battery energy storage assets’ operational flexibility and market participation without directly owning the infrastructure.
Under such arrangements, the offtaker typically pays a fixed fee for the right to control charging and discharging a specified portion of the asset’s capacity.
Akaysha Energy’s managing director, Paul Curnow, believes the agreement marks a significant advancement in large-scale storage deployment and demonstrates market confidence in BESS as a viable long-term energy solution.
The deal follows Akaysha’s previous virtual tolling agreement signed in July 2024 with EnergyAustralia for 200MW of its 415MW/1,660MWh Orana BESS over a 12-year period. The developer had also signed a long-term offtake agreement with commodities trading company Guvnor Group for its 205MW/410MWh Brendale BESS in Queensland.
For Snowy Hydro, the BESS agreement comes as the company faces challenges with its flagship Snowy 2.0 pumped hydro project, which has experienced significant cost overruns and construction delays since the development was first announced.
The deal with Akaysha Energy provides the company with an alternative storage option to manage market volatility while the pumped hydro project progresses.
The Elaine BESS project, located in western Victoria, will connect to the existing Elaine Terminal Station. Construction is expected to commence in early 2026, with commercial operations targeted for mid-2027.
BHP secures 100MW renewable energy deal with Neoen for copper operations
In a separate development, mining company BHP has signed a 10-year power purchase agreement (PPA) with French renewable energy developer Neoen for a 100MW baseload renewable energy supply for its copper operations in South Australia.
The agreement will provide BHP with a 24/7 power solution for its copper mining facilities, including the Olympic Dam mine, smelter, and refinery, as well as operations at Carrapateena and Prominent Hill sites.
The power will be supplied from Neoen’s Goyder North Wind Farm, supported by the Goyder Battery, a 200MW/800MWh BESS.
This marks the third renewable energy electricity deal for BHP’s South Australian copper operations and the second agreement with Neoen, following a 70MW contract that commenced in July 2025.
The agreement aligns with BHP’s broader decarbonisation strategy, which targets reducing operational greenhouse gas emissions by at least 30% by 2030 from 2020 levels.
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