One of Australia’s largest battery energy storage systems has entered commercial operation, with EnergyAustralia supporting the project through an innovative financing agreement designed to accelerate investment in grid-scale storage.
Akaysha Energy’s Orana Battery Energy Storage System began commercial operations on 26 June 2026. Located near Wellington in New South Wales’ Central West Orana Renewable Energy Zone, the 415MW/1660MWh facility is among the largest battery assets in the National Electricity Market.
The project comes as large-scale battery storage plays an increasingly important role in maintaining grid reliability as coal-fired power stations retire and renewable generation expands. Batteries store excess electricity during periods of high renewable output and discharge it when demand rises, helping to balance supply and reduce renewable energy curtailment.
A key feature of the project is a 12-year virtual tolling agreement between EnergyAustralia and Akaysha Energy. Under the arrangement, EnergyAustralia secures the financial rights to 200MW of the battery’s capacity without owning or operating the asset, allowing it to manage exposure to wholesale electricity price volatility while Akaysha retains ownership and operational control.
The agreement also provides greater revenue certainty for the project, supporting investment in large-scale battery infrastructure and helping bring additional storage capacity online.
EnergyAustralia Trading and Transition Executive, Daniel Nugent, said the agreement gives the retailer access to the battery’s firming capability while supporting greater renewable energy integration.
“Our virtual tolling agreement with Akaysha gives us access to a large-scale battery’s firming capability and the ability to soak up renewable energy that would otherwise be wasted, without owning or operating the asset ourselves,” Nugent said.
“It’s a model that gets more storage into the market sooner. Agreements like this one sit alongside the batteries we’re building ourselves at Wooreen, Hallett and Mt Piper – different approaches, but all pointed at the same thing: a more flexible, more resilient grid.”
