Climate risk transfer platform Re2 and BlackRock’s Akaysha Energy have inked an innovative risk hedging arrangement for Akaysha’s Ulinda Park Battery Energy Storage System (BESS).
Re2 developed the Battery Revenue Swap Agreement to enable the mitigation of revenue risk for BESS projects for a period of up to 10 years.
Related article: Akaysha Energy: Powering Australia’s renewables transition
Re2 CEO Richard Oduntan said, “The implementation of risk management solutions driven by the private sector will be essential to the build out of energy storage systems at a scale necessary to support the continued growth of variable renewable energy. We are proud to be working with market-leading partners and excited to have had the opportunity to collaborate with Akaysha and BlackRock on this risk transfer transaction. The team at Re2 has a well-earned reputation for bringing innovative products to the renewable energy market, and we look forward to continuing to play a catalysing role in the energy transition.”
Akaysha Energy CEO and managing director Nick Carter said, “The revenue swap product that we have developed with Re2 is exactly the sort of innovative offtake product that we need in the market right now to help accelerate the build-out of large-scale battery projects like the Ulinda Park Battery Energy Storage System (BESS). The 10-year revenue swap provides the right balance of contracted and unhedged revenue, while still allowing us to operate the project and bid into the energy and FCAS markets in the NEM.”
Related article: Akaysha Energy to develop NSW’s Waratah Super Battery
The 155MW/300MWh Ulinda Park BESS is being developed in Queensland, Australia, with operation expected to begin in 2025.
Akaysha has also been appointed by the Energy Corporation of NSW (EnergyCo NSW) to develop the Waratah Super Battery—the largest committed battery project in the southern hemisphere and one of the most powerful batteries in the world.
