Construction Begins on AC-Coupled Battery for Solar Farm in Victoria

Major Battery Project Commences at Mokoan Solar Farm

Construction has officially begun on a significant battery project that will integrate with an existing solar farm in northern Victoria, aimed at enhancing energy storage capabilities. The Danish firm European Energy’s Australian division announced on Friday that it is developing an 80 megawatt-hour (MWh) battery at the Mokoan Solar Farm, with hopes of bringing it into operation by mid-2027.

Catriona McLeod, managing director of European Energy Australia, highlighted the importance of batteries for the renewable energy sector, stating that they are essential for maximising the potential of wind and solar resources and for providing renewable energy during peak demand periods. She indicated that further developments in this area are expected in late 2026 and throughout 2027.

Project Details and Financial Backing

The battery energy storage system (BESS) at Mokoan will be AC-coupled to the existing 58 MW solar farm, meaning it will function as a single unit connected to the grid. Last month, financial clearance for the project was achieved, facilitated by Deutsche Bank’s non-recourse financing package, which was aimed at restructuring existing debts on the solar facility and supporting the new battery’s construction and operation.

Jens Peter Zink, deputy CEO of European Energy, noted that AC-coupled projects like Mokoan, which integrate solar and storage, are increasingly appealing to institutional investors due to their ability to deliver stable energy production and operational flexibility. Zink expressed that expanding their battery portfolio across different markets is a crucial goal, marking the financing agreement as a significant milestone for the company in Australia.

Connections to Other Projects

This initiative follows the recent financial closure of European Energy’s Winton North project, which stands as one of Australia’s pioneering solar and battery hybrid installations. This move signals a shift towards more bankable projects, especially as technology costs reduce. The Winton North project combines 130 MW of solar power with a 100 MW, 220 MWh battery facility south of Wangaratta and is set to be completed this year, backed by a power purchase agreement with Amazon. Significantly, Amazon has also secured an offtake agreement with the Mokoan BESS.

Since June 2025, the Mokoan solar farm has been fully operational after being selected under the federal Labor government’s Capacity Investment Scheme. The integration of this battery system signifies a growing advancement in the clean energy landscape in Australia.