Danish developer European Energy has reached financial close on the 80MWh Mokoan solar-plus-storage project in Victoria, Australia.
The developer confirmed that it had secured a AU$110 million (US$77 million) non-recourse financing package from Deutsche Bank to refinance the operational 58MWp Mokoan Solar Farm and to fund construction of a co-located 40MW/80MWh battery energy storage system (BESS).
The financing package includes a term facility, hedging and ancillary facilities. The Mokoan solar PV power plant, located on 94 hectares approximately 25km south-west of Wangaratta in northern Victoria, has been fully operational since June 2025 and generates approximately 113GWh of electricity annually.
The project was selected under the first tender of the Australian government’s Capacity Investment Scheme (CIS), which provides long-term revenue support for renewable energy projects, and the battery storage system is AC-coupled to the existing solar PV plant.
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Catriona McLeod, managing director of European Energy Australia, said the close gave the project a firm financial foundation for construction.
“Reaching financial close on Mokoan is an important milestone for our Australian portfolio. Deutsche Bank’s support spans both the refinancing of the operational solar farm and the construction financing for the battery storage system, giving us a strong foundation for the next phase of the project,” she said.
Rachel Chia, head of project finance for APAC at Deutsche Bank, said the transaction reflected growing institutional appetite for integrated renewable energy assets.
“This transaction demonstrates our ability to deliver integrated financing solutions across the project lifecycle, supporting clients as they develop critical energy infrastructure.” Deutsche Bank has supported the financing of more than 12GW of renewable energy assets across Australia since 2019.
European Energy’s growing Victorian battery storage footprint
The Mokoan financial close is European Energy’s second in Australia within three weeks.
The company reached financial close on the Winton North solar-plus-storage project in early July, a 130MW solar and 100MW/220MWh BESS development in northeast Victoria backed by debt from Commerzbank and Société Générale, with Amazon holding power purchase agreements covering both the solar and battery storage output.
Construction at Winton North is already underway and is expected to be completed in 2026.
Our sister site, PV Tech, reported in March 2025 that European Energy commissioned the Mokoan solar PV power plant as its first Australian solar plant, having acquired the project from Lightsource bp in December 2022.
The site uses bifacial solar PV modules and reached full operational status in June 2025, with debt for the solar-only phase provided by NORD/LB Singapore under green loan principles.
The Mokoan financial close converts the initial single-technology financing into a broader package covering the hybrid configuration, with the battery system now entering construction.
European Energy deputy CEO Jens Peter Zink said the Mokoan close reflected the company’s strategy of pairing stable solar generation with battery storage to meet growing institutional demand for flexible, contracted assets.
“Assets that combine stable production with operational flexibility are increasingly attractive to institutional investors, and Australia remains a core part of our long-term growth strategy. 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 two Victorian financial closes land within a broader acceleration of Australia’s hybrid solar-plus-storage pipeline.
Australia added 9.1GW of new generation and storage in FY26, more than double the FY25 result, with battery projects dominating the connections pipeline and a growing share of new solar projects incorporating co-located storage at the application stage.
AEMO’s June 2026 scorecard found that 2.4GW of existing solar projects commenced or completed processes to add battery systems during FY26, a figure that points to the rapid normalisation of the hybrid model across the NEM.
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