en.Wedoany.com Reported - Akaysha Energy's Orana Battery Energy Storage System (Orana BESS), with a capacity of 415 MW and a storage duration of up to four hours (1660 MWh), has entered commercial operation, bringing the company's total operational battery storage capacity to over 4 GWh.

The storage system is located within the Central West Orana Renewable Energy Zone (REZ), 2 kilometers northeast of Wellington, New South Wales. The project secured a Long-Term Energy Service Agreement (LTESA) in Round 2 of the New South Wales Roadmap Tender in November 2023, which also served as a pilot for the federal Capacity Investment Scheme tender.

Akaysha Energy has entered into a virtual tolling agreement (VTA) with EnergyAustralia. Under this agreement, 200 MW of capacity is contractually secured. Signed two years ago, the VTA allows EnergyAustralia to conceptually "charge" and "discharge" a 200 MW "virtual battery" within pre-agreed bidding parameters, independent of Akaysha's physical operation of the asset. The unique structure of the VTA enables EnergyAustralia to capture market benefits of battery capabilities, such as fast dispatch and arbitrage, without actually owning or operating the battery.

Tony Fullelove, Managing Director of Development and Delivery at Akaysha Energy, stated that the storage system will play a crucial role in supporting peaking capacity and grid reliability, thereby enabling more renewable energy to be integrated into New South Wales' power system. He added that the virtual tolling agreement allows EnergyAustralia to access the market benefits of large-scale battery storage, including rapid response capabilities and greater flexibility. Fullelove expressed gratitude for the support from the Australian federal government under the Capacity Investment Scheme, as well as key project delivery partners Consolidated Power Projects Australia, Transgrid, Tesla, and Australian transformer suppliers Tyree Transformers and Wilson Transformer Company, whose collaboration ensured the project was delivered on time and within budget.

Daniel Nugent, Executive Director of Trading and Transformation at EnergyAustralia, stated that the virtual tolling agreement enables the company to access the peaking capacity of a large-scale battery without owning or operating the asset, and to absorb renewable energy that would otherwise be wasted. He believes this model helps facilitate the financing and construction of battery projects and can bring more storage to market more quickly.