European Energy has officially commenced construction of a 40 MW / 80 MWh AC-coupled battery energy storage system (BESS) at its Mokoan Solar Farm in northern Victoria, aiming to maximise the operational potential of the existing solar facility.

The 58 MW Mokoan Solar Farm has been in full operation since early 2025, generating around 113 GWh of clean electricity each year. The newly built two-hour duration BESS will share the farm’s existing grid connection and is scheduled to come online in mid-2026.

Catriona McLeod, Managing Director of European Energy Australia, emphasised that battery storage is a core pillar of the company’s renewable development strategy. “Batteries are crucial for European Energy and the broader renewable energy industry,” McLeod stated.

 “They will fully unlock the potential of wind and solar assets and deliver reliable renewable power during peak demand periods.” She also revealed that the company will roll out multiple new renewable energy initiatives from late 2026 through 2027, with more project announcements forthcoming.

The Mokoan battery project secured financial closure in the recent month, supported by a non-recourse financing package from Deutsche Bank. The funding covers the refinancing of the solar farm’s existing debt as well as the construction and operational costs of the new BESS facility.

This project marks another milestone for European Energy’s Victorian renewable portfolio, following the recent financial close of the Winton North Solar Farm with battery storage project. Notably, both the Mokoan and Winton North solar farms are underpinned by power purchase agreements (PPAs) with Amazon Web Services (AWS), ensuring stable off-take for the generated renewable power.