Denmark-based European Energy will build an AC-coupled battery energy storage system alongside its operational 58 MW Mokoan Solar Farm near Wangaratta, Victoria, after reaching financial close on the 80 MWh project.
European Energy said German lender Deutsche Bank has provided a non-recourse package to refinance the existing debt on the solar farm, and to support construction and operation of the co-located battery energy storage system.
European Energy Australia Managing Director Catriona McLeod said reaching financial close on Mokoan provides a strong foundation for the next phase of the project and is a significant milestone for the company’s Australian portfolio.
“This is our second battery to reach this important milestone and it will be our first battery to come online,” she said, adding that European Energy is planning to add battery storage to most of its Australian projects.
European Energy Australia currently has a renewable energy pipeline of about 10 GW, with projects at various stages from early investigation through to fully operational.
“Batteries are a huge part of our strategy,” McLeod said. “They have the potential to maximise our renewable assets while providing more renewable energy when it’s needed most, and we’re planning to add them to most of our sites over the coming years.”
European Energy Deputy Chief Executive Jens Peter Zink said assets like Mokoan, that combine solar and storage to provide stable production and operational flexibility, are becoming increasingly attractive to institutional investors.
“Our battery portfolio is expanding across markets, and securing financing for this co-located storage system in Australia is an important milestone,” he said.
The 58 MW Mokoan Solar Farm, which is supported by the federal government’s revenue underwriting Capacity Investment Scheme, has been fully operational since June 2025 and generates approximately 113 GWh of electricity annually.
McLeod said construction of the battery will commence soon with commissioning expected about the middle of next year. Once operational, the two-hour AC-coupled battery energy storage system is expected to support grid stability and greater integration of renewable energy into the Victorian grid.
The Mokoan financial close follows European Energy’s recent announcement of financial close for the Winton North solar farm and battery project being constructed in Victoria’s northeast.
Winton North, which combines 130 MW of solar and a 100 MW / 220 MWh battery energy storage system, is under construction with operations expected to commence in 2027. Once operational, the facility is expected to generate 227 GWh of clean energy annually.
Both the Winton North and Mokoan solar farms are backed by a power purchase agreement (PPA) with global technology provider Amazon Web Services.
The developer last year signed a deal to supply Amazon’s Australian division with more than 170 MW of capacity. The agreement also includes the 97 MW Bullyard PV project being developed near Bundaberg on the central Queensland coast.
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