“Important milestone:” Finance landed for AC-coupled big battery to turn operating solar farm into hybrid

Danish renewables developer European Energy will forge ahead with plans to add a two-hour big battery to an existing solar farm in northern Victoria after locking in a major new funding deal with global investment giant Deutsche Bank.

European Energy Australia says Deutsche Bank has provided a non-recourse package to refinance the existing debt on the operational 58 megawatt (MW) Mokoan Solar Farm, and to support construction and operation of the co-located 40 MW/80 megawatt-hour (MWh) battery energy storage system (BESS).

European Energy deputy CEO Jens Peter Zink says assets like Mokoan, that combine solar and storage to offer 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,” Zink said on Monday in a statement announcing the deal.

The Mokoan deal follows the announcement of financial close on European Energy’s Winton North project, one of Australia’s first solar and battery hybrid projects – and part of a big shift away from wind to more bankable projects where the cost of technologies are falling rather than rising.

Winton North – which combines 130 MW of solar and a 100 MW, 220 MWh big battery south of Wangaratta in Victoria – is under construction and due for completion this year, and is underpinned by a power purchase agreement with Amazon. Amazon has also contracted an offtake deal with the Mokoan BESS.

European Energy Australia’s Mokoan solar farm has been fully operational since June 2025 after being selected under federal Labor’s Capacity Investment Scheme.

The Mokoan BESS will be AC-coupled to the solar farm – meaning it will share the one connection to the grid and operate as one asset – and is now moving into construction, the company says.

European Energy currently has a renewable energy pipeline of around 10 gigawatts (GW) in Australia, with projects at various stages from early investigation through to fully operational.

Deutsche Bank says its Corporate Bank has supported the financing of more than 12 GW of renewable energy assets across Australia, so far.

“We’re proud to support projects that enable greater renewable energy integration and contribute to Australia’s energy transition,” said Rachel Chia, head of project finance APAC at Deutsche Bank.

“This transaction demonstrates our ability to deliver integrated financing solutions across the project lifecycle, supporting clients as they develop critical energy infrastructure.”

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