European Energy has initiated construction on what will be its first operating project in Australia, a 56MW solar farm in Victoria.
Located in the Hume region of the state, this solar farm’s construction is anticipated to be completed in 2025.
The Mokoan Solar Farm received Development Approval from the Benalla Rural City Council in December 2018.
An expansion of the project was later approved by the Victorian Department of Environment, Land, Water, and Planning in June 2020.
The 94-hectare site, previously primarily used for grazing, underscores the project’s commitment to sustainable development.
“We are thrilled to have started construction on our first solar project in Australia,” said European Energy’s country manager in Australia Catriona McLeod.
She added: “We see this as the start of many projects by European Energy in the country.
“We are eager to leverage our capability in renewable energy development, EPC, financing and operating to contribute to meeting Australia’s renewable energy targets.”
The project has reached financial close on a loan facility from NORD/LB Singapore Branch, expected to adhere to the Loan Market Association’s Green Loan Principles.
NORD/LB acted as MLAUB, Green Structuring Bank, LC provider, Hedge Provider and Agent.
“With our skilled in-house EPC team leading the construction of the Mokoan Solar Farm, we are confident in the project’s success,” said executive vice president of project development at European Energy Thorvald Spanggaard.
“Australia presents a highly promising market for renewable energy projects,” he added.
“Currently, we have over 5GW under active development in Australia and a further 3 GW in screening, and we aim to realise these projects in the coming years.”