Construction is underway at Akaysha’s Elaine Battery Energy Storage System (BESS) in Victoria following the successful close of a $460 million financing package, marking a major milestone for one of the country’s largest standalone battery projects. The project is located within the South West Victorian Renewable Energy Zone and is now progressing into full execution with delivery partners mobilized on site. InEight, a construction controls software provider managing project documentation at Elaine BESS announced the milestone on April 15.

With a capacity of approximately 300-311 MW/1,200-1,244 MWh, Elaine BESS in Victoria will provide up to four hours of energy storage. This positions it as a key grid-stabilization asset in Australia’s rapidly evolving renewable energy system.

Elaine Battery Energy Storage System Project and Australia’s BESS Landscape

Elaine BESS project in Victoria also comes at a time when Australia’s National Electricity Market (NEM) is undergoing rapid transformation. This is as coal generation retires and renewable penetration continues to increase. In this context, large-scale battery systems are essential to balancing the increasing intermittent solar and wind generation and managing transmission congestion and outage risks. Like most battery storage installations, Elaine BESS in Victoria will also provide frequency and system stability services.

The battery storage installation is located adjacent to the Elaine Terminal Station. Here, it will benefit from existing transmission infrastructure, reduced connection costs and a faster deployment timeline – following a similar pattern to that of Latrobe Valley Battery Energy Storage System which is now operational after two years of construction.

Elaine BESS Project Scope

Elaine BESS is a utility-scale lithium-ion battery storage facility designed to deliver flexible, dispatchable power.

Key Features:

Capacity: 300–311 MW / 1,200–1,244 MWh

Storage Duration: 4 hours

Location: 100 km west of Melbourne, Victoria

Grid Connection: Elaine Terminal Station

Function: Grid stability, renewable integration, outage mitigation

The system will play a key role in firming renewable energy output. It will also ensure electricity remains available during peak demand or low generation periods.

Development Timeline

Project Announcement: 2023

Planning Approval: 2023

Financial Close: November 2025

Construction Start: Late 2025/Early 2026

Current Status: Under construction

Project Cost

Total Investment: AUD 460 million

Financing Type: Non-recourse project finance

Lender Group:

• BNP Paribas
• CIBC
• Commonwealth Bank of Australia
• ING
• Mizuho
• MUFG
• SMBC
• Société Générale

Additional Funding Support: AUD 75 million in letters of credit

Elaine Battery Energy Storage System (BESS) Project Virtual Tolling Agreement (VTA) with Snowy Hydro

The financing is also underpinned by a 15-year virtual tolling agreement (VTA) with Snowy Hydro, securing long-term revenue stability.

The 15-year virtual tolling agreement (VTA for Elaine BESS is also particularly notable as it is one of the largest of its kind in Australia.

Unlike traditional power purchase agreements, this structure separates asset ownership from market operation and allows Snowy Hydro to optimize battery dispatch in the electricity market. It also provides Akaysha with stable, contracted revenue from Elaine BESS in Victoria.

Project Team at Elaine BESS in Victoria

Developer: Akaysha Energy (BlackRock-backed)

Technology Supplier: Tesla

EPC Contractor: Consolidated Power Projects

Offtaker: Snowy Hydro

Legal Advisor: Allens

Financiers:

• BNP Paribas
• CIBC
• Commonwealth Bank of Australia
• ING
• Mizuho
• MUFG
• SMBC
• Société Générale