European Energy Secures Funding for Hybrid Solar and Battery Project
Danish renewable energy developer European Energy is set to progress with plans for a two-hour large-scale battery system at their Mokoan Solar Farm in northern Victoria, following a significant funding agreement with Deutsche Bank, a global investment leader.
European Energy Australia reports that Deutsche Bank has provided a non-recourse financing package aimed at refinancing the existing debt of the operational 58 megawatt (MW) Mokoan Solar Farm, while also aiding the construction and operation of a co-located 40 MW/80 megawatt-hour (MWh) battery energy storage system (BESS).
Attractiveness of Solar and Storage Assets
Jens Peter Zink, deputy CEO of European Energy, highlighted that assets like Mokoan—integrating solar energy production with storage capabilities—are increasingly appealing to institutional investors seeking stable production and operational flexibility. “Our battery portfolio is expanding across markets, and securing financing for this co-located storage system in Australia marks a significant milestone,” Zink stated in a press release concerning the deal.
Expanding Portfolio with Winton North Project
The Mokoan financing aligns with the recent announcement of financial closure on the Winton North project, recognised as one of Australia’s pioneering solar and battery hybrid projects. This initiative highlights a shift from wind towards more financially viable projects as the costs for technology decrease. Located south of Wangaratta in Victoria, Winton North brings together 130 MW of solar power with a substantial 100 MW, 220 MWh battery system and is set for completion this year, supported by a power purchase agreement with Amazon, which has also secured an offtake arrangement with the Mokoan BESS.
Having been operational since June 2025 after being chosen as part of the federal Labor’s Capacity Investment Scheme, the Mokoan solar farm is now transitioning into the construction phase for its battery storage system. The BESS will be AC-coupled to the solar installation, enabling it to operate as a single asset while sharing one grid connection.
European Energy’s Growth in Australia
European Energy maintains a robust pipeline of renewable energy projects in Australia, boasting approximately 10 gigawatts (GW) at varying stages, from early investigation to fully operational plants. Meanwhile, Deutsche Bank states that its Corporate Bank has facilitated financing on over 12 GW of renewable energy assets throughout Australia thus far.
Rachel Chia, head of project finance for APAC at Deutsche Bank, expressed pride in supporting projects that enhance renewable energy integration and assist in Australia’s energy transition. “This transaction showcases our capacity to provide integrated financing solutions throughout the project lifecycle, supporting clients as they develop essential energy infrastructure,” she commented.
