en.Wedoany.com Reported - A large-scale battery energy storage system in Australia has entered commercial operation, supported by an innovative financing agreement designed to accelerate grid-scale energy storage investment. Akaysha Energy's Orana battery energy storage system began commercial operation on June 26, 2026. Located in the Central West Orana Renewable Energy Zone near Wellington, New South Wales, the facility has a capacity of 415MW/1660MWh, making it one of the largest battery assets in the National Electricity Market.

As coal-fired power stations retire and renewable energy generation expands, large-scale battery storage is increasingly critical for maintaining grid reliability. Batteries store excess electricity during periods of high renewable output and discharge when demand rises, helping to balance power 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 this arrangement, EnergyAustralia obtains financial rights to 200MW of the battery's capacity without owning or operating the asset, thereby managing wholesale electricity price volatility risks, while Akaysha retains ownership and operational control. The agreement provides greater revenue certainty for the project, supports investment in large-scale battery infrastructure, and helps connect more storage capacity to the grid.

Daniel Nugent, Executive Director of Trading and Transformation at EnergyAustralia, stated that this agreement enables the retailer to access the battery's peaking capacity while supporting greater integration of renewable energy. Nugent noted that the virtual tolling agreement allows it to capture the peaking capacity of a large-scale battery and absorb renewable energy that would otherwise be wasted, without needing to own or operate the asset. This is a model that can bring more storage to market faster, running in parallel with the company's self-built battery projects at Wooreen, Hallett, and Mt Piper, all contributing to the goal of building a more flexible and resilient grid.