Re2 and Akaysha Energy Announce First of Its Kind Battery Revenue Swap Agreement
HAMILTON, Bermuda, July 7, 2023 (Newswire.com) - Re2, a leading climate risk transfer platform, and Akaysha Energy, a portfolio company owned by a fund managed by BlackRock's Infrastructure business, are pleased to announce the successful completion of an innovative risk hedging arrangement for Akaysha's Ulinda Park Battery Energy Storage System (BESS). The Battery Revenue Swap Agreement was developed by Re2 to enable the mitigation of revenue risk for BESS projects, for a period of up to 10 years.
"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 catalyzing role in the energy transition," said Richard Oduntan, CEO of Re2.
Nick Carter, CEO and Managing Director of Akaysha Energy, 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."
The Ulinda Park BESS is currently under development in Hopeland, Queensland, Australia, with a capacity of 155 MW/300 MWh, and Akaysha expects to commence operations in 2025.
The Ulinda Park BESS plays an important role in helping Queensland achieve its Renewable Energy Targets. It will ensure that households and businesses have access to reliable and affordable clean energy. Akaysha is utilizing the extensive energy knowledge in the Western Downs region, with a strong emphasis on creating local job opportunities and supporting the local supply chain. For media inquiries, please contact:
Re2: hello@re2capital.com
Akaysha Energy: info@akayshaenergy.com.au
About Re2: Re2 is a leading climate risk transfer platform headquartered in Bermuda. We specialize in providing innovative solutions to manage and mitigate climate-related risks, including products to manage revenue-related risks for wind, solar, and hydro-renewable generation projects and battery energy storage. For additional information on Re2, please visit https://re2capital.com.
About Akaysha Energy: Akaysha Energy brings together market-leading experience in energy markets, technology, development, asset management and capital markets for end-to-end development of Battery Energy Storage Systems (BESS) and renewables projects in Australia and across the APAC region. For additional information on Akaysha Energy, please visit www.akayshaenergy.com.au.
Source: Re2 Capital
