European Energy secures AUD 110 million Deutsche Bank debt package for Australian hybrid solar and storage project

European Energy has obtained an AUD 110 million non-recourse debt facility from Deutsche Bank to refinance Victoria's Mokoan Solar Farm and fund a co-located 40 MW / 80 MWh battery storage system. Supported by Australia's Capacity Investment Scheme, the deal advances utility-scale hybrid generation and grid stabilization.

European Energy has secured an AUD 110 million three-year non-recourse debt facility from Deutsche Bank to refinance existing liabilities and fund the construction of a co-located battery energy storage system in Victoria, Australia. The capital package restructures the debt profile of the operational Mokoan Solar Farm while directly financing the addition of an alternating current-coupled Mokoan Battery Energy Storage System. The co-located storage component features a capacity of 40 megawatts and 80 megawatt-hours, designed to operate in tandem with the existing photovoltaic installation. Headquartered in Denmark, European Energy is a global developer, constructor, and operator of utility-scale wind, solar, and energy storage infrastructure across multiple international markets. Deutsche Bank, a leading German multinational investment bank, acted as the sole financier, expanding its debt advisory and underwriting presence within the Asia-Pacific green energy sector.

The transaction highlights a growing structural preference among clean energy investors for hybrid generation assets that combine variable solar output with flexible battery storage. Fully operational since mid-2025, the 58-megawatt Mokoan Solar Farm generates roughly 113 gigawatt-hours of clean electricity annually, delivering enough power to satisfy the demand of more than 18,000 residential households. By integrating utility-scale energy storage into the existing solar asset, the project transforms a basic intermittent generator into a dispatchable energy hub. This operational enhancement enables the facility to store excess daytime generation and discharge electricity during peak demand windows, effectively mitigating price cannibalization risks and providing critical stabilization services to the regional power grid, according to official disclosures.

From an industry and regulatory standpoint, the development underscores the pivotal role of government underwriting frameworks in unlocking commercial debt capital for Australian energy transition projects. The Mokoan hybrid venture was previously selected under the Australian Government’s Capacity Investment Scheme, a policy mechanism designed to offer long-term revenue certainty for new renewable generation and firming capacity across the National Electricity Market. Regulatory frameworks that guarantee baseline revenue floors significantly reduce downside revenue exposure, allowing commercial lenders such as Deutsche Bank to extend competitive, non-recourse project finance structures despite volatility in wholesale electricity markets.

For institutional investors and energy developers, the transaction demonstrates a proven pathway for scaling storage infrastructure via brownfield asset enhancement. Adding high-capacity battery units to existing renewable facilities optimizes shared grid connection infrastructure, lowers land acquisition overheads, and shortens development timelines compared to standalone greenfield installations. As grid operators across Australia accelerate the phase-out of legacy coal-fired generation, co-located solar and storage assets supported by structured debt instruments are expected to remain a primary vector for institutional capital allocation across the Australian clean technology landscape.