Snowy Hydro and Akaysha Energy today have announced a landmark 15-year virtual toll agreement with Akaysha Energy for the 311 megawatt Elaine Battery Energy Storage System (BESS) in Victoria.
This 15-year agreement is Snowy Hydro's first battery toll agreement. With a contracted capacity of 220 megawatts, it is the largest four-hour virtual toll agreement in Australia, setting a precedent for the sector.
Snowy Hydro Chief Executive Officer, Dennis Barnes said the partnership marks a significant step in supporting Australia's renewable energy transition.
"Snowy's unique portfolio of on-demand power stations and electricity storage is the key to the strength of our contribution to reliable electricity supply to homes and businesses and to the introduction of more wind and solar across the grid," Mr Barnes said.
"This deal with Akaysha adds a new short-duration storage layer to our portfolio, which will work hand-in-hand with the long-duration storage capabilities of our pumped hydro assets".
Akaysha Energy Managing Director and Chief Commercial Officer, Paul Curnow, said: "This agreement represents a step change in the way large-scale storage can be delivered to the market and showcases strong market confidence in the value of BESS as a long-term energy solution.
"By partnering with Snowy Hydro, we're demonstrating how flexible, long-term virtual toll agreements can unlock major battery projects and deliver value in the wholesale energy market."
The agreement will strengthen Snowy's ability to help manage wholesale market volatility while enhancing its product offerings to mass-market, large-scale commercial and industrial, and wholesale customers.
For Snowy, the toll structure delivers the benefits of physically building and operating a battery, without the capital, construction and operational burden, making it a highly capital-efficient solution.
The Elaine BESS is strategically located in South West Victoria, being relatively close to the large load centre of Melbourne and providing Snowy with transmission diversification benefits. The development of the Elaine BESS helps support reliable electricity supply to Victoria.
It will help Snowy manage transmission outage risks and support the integration of more wind and solar into the National Electricity Market (NEM).
