Revenue Swap Agreements

What is a Revenue Swap Agreement

A revenue swap agreement is a financial contract between Basis Energy and a developer of a battery asset, who agree to swap a fixed periodic amount for the difference between that fixed amount and actual market revenues.

In practice, Basis Energy pays the developer a fixed amount each period regardless of what the market does. If actual NEM revenues come in above the fixed amount, the developer passes the surplus to Basis Energy. If revenues come in below, Basis Energy absorbs the shortfall.

The result is a smoother, more foreseeable revenue profile for your project.

REVENUE SWAP AGREEMENT How Basis Energy Creates Revenue Certainty WITHOUT SWAP Variable Market Revenue Prices shift every 5 minutes HighMidLow REVENUE SWAP Long-term contract WITH SWAP Fixed Contracted Revenue Predictable annual payment Y1Y3Y5Y7Y10 THE EXCHANGE Battery Project Asset owner & operator Receives fixed revenue Basis Energy Counterparty & market trader Manages market exposure VARIABLE MARKET REVENUE FIXED ANNUAL PAYMENT Revenue Certainty Stable cash flows over the life of the asset Lender Confidence Predictable returns that satisfy credit committees Bankable Investment Enabling projects to reach Financial Close

The Financial Impact

ENABLING PROJECT FINANCE

The contracted income from a Revenue Swap Agreement fundamentally changes how lenders assess a battery storage project. Where merchant revenue is volatile and difficult to underwrite, a fixed annual payment provides the revenue certainty banks require to commit long-term capital.

The impact on project financing is significant.

Financing Statistics — Basis Energy
% SENIOR DEBT GEARING 70 % Higher leverage means less equity required from shareholders LOAN TENOR 15–20 YEARS Extended repayment periods aligned with asset life EQUITY DISTRIBUTIONS Unrestricted No lock-up constraints on equity dividends Outcomes achievable through a Revenue Swap Agreement with Basis Energy

From Agreement to Operation

HOW THE STRUCTURE WORKS

Basis Energy provides long-term Revenue Swap Agreements that convert unpredictable electricity market income into stable, contracted revenue. These agreements are designed specifically for battery storage projects that are technically ready to build but cannot secure financing because their revenue depends on electricity prices that change every five minutes.

The Revenue Swap Under a Revenue Swap Agreement, Basis commits to pay the project a fixed annual amount. In return, the project passes through its variable electricity market revenue. This exchange transforms volatile merchant income into a predictable revenue stream that lenders can underwrite with confidence, enabling projects to secure financing and reach Financial Close. FIXED REVENUE Structure & Optimise Our role goes beyond providing the contract itself. We work closely with developers to structure a revenue solution that supports their financing process and investment objectives. We optimise the structure of the agreement, tailoring the term, revenue profile and risk allocation to suit the project's financing requirements. TAILORED TERMS Document & Execute Once commercial terms are agreed, the agreement is documented and executed under an industry-standard framework designed for institutional counterparties. The ISDA framework is recognised globally, providing credit and investment committees with a familiar and trusted structure for evaluating and approving the agreement. ISDA FRAMEWORK Trade & Manage When the battery becomes operational, Basis actively manages and trades the asset's market revenue, capturing value from electricity price volatility while delivering the contracted payment to the project. The developer continues to own and be technically responsible for the battery. Basis manages the market exposure and revenue performance. OPERATIONAL Revenue certainty from pre-development through the life of the asset

The result is simple: a battery project with contracted income that banks can lend against, allowing development pipeline to become built infrastructure.

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