Energy company Akaysha locks down $196 million in debt financing to widen array of battery storage assets
In a significant development for the renewable energy sector, Akaysha Energy has secured a A$300 million corporate debt facility for large-scale battery energy storage systems (BESS) in Australia and international markets. This financing marks a milestone for the Australian renewables sector, as described by Andrew Wegman, Chief Financial and Investment Officer of Akaysha Energy.
The financing, which is denominated in Australian dollars, euros, and US dollars, follows the operational delivery of Stage 1 of the Waratah Super Battery, now the world's most powerful BESS. This project, designed to stabilize New South Wales' grid and support greater penetration of renewables, underscores Akaysha Energy's ability to deliver large-scale assets at critical nodes of the energy system.
The borrowing base structure of Akaysha's facility is a first-of-its-kind in the Australian energy transition, linking loan capacity to the underlying value of operational and development-stage assets. This structure could lower transaction costs, shorten timelines, and attract larger pools of institutional capital into storage. If the borrowing base structure proves durable, it could have implications well beyond national borders.
The financing illustrates how financial innovation can accelerate the deployment of enabling technologies at a pace aligned with decarbonization targets. The International Energy Agency projects global battery storage capacity will need to multiply by more than sixfold this decade to integrate variable renewables and ensure grid stability. With its high share of variable renewables and ageing coal fleet, Australia is one of the most critical testbeds for grid-scale storage.
The strong participation of leading banks in the facility demonstrates "confidence in both Akaysha's strategy and the central role that large-scale batteries will play in ensuring a secure and sustainable energy transition," according to industry observers. BNP Paribas, Deutsche Bank, ING, SMBC, and Westpac served as lead lenders for the facility.
Akaysha Energy is positioning itself as a cross-market player in the rapidly expanding storage segment, with multiple projects advancing in Australia, Japan, the United States, and Germany. The backing by European, Japanese, and Australian banks in Akaysha's facility reflects intensifying competition among lenders to secure exposure to energy transition assets.
Success in financing and building projects at scale in Australia could set a precedent for financing storage pipelines across Asia-Pacific and Europe. For executives weighing capital allocation, battery storage is moving into the mainstream of energy infrastructure, with financial tools adapting to support rapid global growth. The borrowing base structure of Akaysha's facility could be a replicable model for other developers seeking capital at portfolio level rather than asset-by-asset.
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