Akaysha Energy and Snowy Hydro have announced a landmark 15-year Virtual Tolling Agreement for Akaysha Energy's 311MW/1244 MWh Elaine Battery Energy Storage System (BESS) in Victoria. The agreement, announced on September 24, 2025, represents Snowy Hydro's first battery offtake agreement and marks the largest four-hour virtual toll arrangement in the Australian market, with a contracted capacity of 220MW.

Agreement Structure and Market Significance

The Virtual Tolling Agreement sets a new benchmark for investment-grade battery contracts in Australia, with its 15-year term. Under the arrangement, Snowy Hydro gains the benefits of physically building and operating a battery without the capital, construction, and operational burden, creating what the companies describe as a highly capital-efficient solution.

For Akaysha Energy, the agreement will underpin project financing with highly bankable contracted revenues. Virtual tolls allow energy providers to secure market benefits of battery capabilities, such as rapid dispatch and arbitrage, through financial arrangements rather than physical ownership and operation. Under virtual tolling agreements, the buyer has the right to notionally charge and discharge a 'virtual battery' as if it owned or operated the physical battery itself.

Strategic Location and Grid Benefits

The Elaine BESS is strategically located in Southwest Victoria and will help support reliable electricity supply to the state. The battery system is designed to manage transmission outage risks and support the integration of more wind and solar into the National Electricity Market (NEM). Construction is scheduled to commence in late September 2025, with the battery providing up to four hours of energy storage.

Over the 15-year term, the Virtual Tolling Agreement will strengthen Snowy Hydro's ability to help manage wholesale market volatility while enhancing its product offering to mass-market, large-scale commercial, industrial, and wholesale customers.

Executive Commentary

Dennis Barnes, CEO of Snowy Hydro, stated: “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. 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.”

Paul Curnow, Managing Director and Chief Commercial Officer at Akaysha Energy, commented: “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 offtake arrangements can unlock major battery projects and deliver value in the wholesale energy market.”

Akaysha Energy's Growing Portfolio

This Virtual Tolling Agreement represents the fourth Offtake Agreement for Akaysha Energy, demonstrating the company's position as an innovative market leader in proving the economic benefits of large-scale batteries to market participants, investors, and consumers. The agreement follows several significant deals in Akaysha Energy's recent history. In August 2024, Akaysha Energy signed its first virtual tolling agreement with EnergyAustralia, a 12-year, 200MW offtake for its 415MW Orana BESS.

This agreement was supported by AUD 650 million in debt financing from a syndicate of 11 domestic and global banks to fund the construction of the battery. Earlier in February 2025, Akaysha Energy announced a long-term Battery Revenue Swap Agreement with Gunvor Group, one of the world's largest independent commodities trading houses, for Akaysha's Brendale BESS.

In July 2023, the company completed what was described as the first Battery Revenue Swap Agreement of its kind at the time, with Re2 Capital, for its 155MW Ulinda Park BESS in Queensland's Western Downs. Akaysha's total contracted capacity across its portfolio now exceeds 1.6 gigawatts, including two assets currently in construction and two in final commissioning. The company describes itself as building the world's most powerful BESS systems as part of creating a better, brighter tomorrow.

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