Energy Transition in Australia with Solar and Storage: OX2 Starts Construction of 135 MW Solar Farm With 100 MW Battery Storage System in Australia

Sydney (Australia) – Swedish project developer OX2 has announced the start of construction in Australia for a combined solar and battery storage project. The “Muswellbrook Solar Farm & Battery” comprises a photovoltaic capacity of 135 MWac (grid connection capacity) as well as a 100 MW battery energy storage system (BESS). Commissioning is scheduled for 2028.

The site is located in the Hunter Central Coast Renewable Energy Zone in the state of New South Wales. According to the company, the facility is expected to generate around 347 GWh of electricity annually, enough to supply approximately 52,000 households. The integrated battery storage system is primarily intended to smooth short-term solar power fluctuations and stabilise the regional electricity grid.

At projects of this scale, battery storage systems are typically used as short-duration flexibility assets, for example to shift peak solar generation into evening hours and support grid stability. In general, such systems have discharge durations of around one to two hours, significantly below long-duration storage applications.

The project has a long-term power purchase agreement (PPA) covering both solar generation and storage capacity. Financing is supported by MUFG, acting as financial advisor, structuring coordinator, and mandated lead arranger.

A key feature of the project is its location on previously industrial land used for former coal mining activities. It therefore represents a transformation of fossil fuel regions into renewable energy hubs in Australia. Project partner is Idemitsu Australia, which remains involved as long-term landowner.

OX2 has been active in the Australian market since 2023 and is developing a project pipeline of more than 3 GW across wind, solar, and storage. With the Muswellbrook project, the company further strengthens its position as an independent power producer in the global renewable energy market.

Source: IWR Online, 19 May 2026