Danish group European Energy announced the closing of a long-term financing deal exceeding €70 million (AUD 130 million, $85.4mn) for the construction of two photovoltaic projects in Australia. These projects have a combined capacity of 137 megawatts (MW), split between two separate sites located in the states of Victoria and New South Wales.
Two major projects in development
The Lancaster solar park, located in the state of Victoria, represents the larger of the two projects with an installed capacity of 106 MW. This site is currently under construction, while the second project, the 31 MW Mulwala solar park in New South Wales, is expected to begin construction in the third quarter of 2025. These installations will be connected to Australia’s National Electricity Market (NEM), thereby contributing to the national energy capacity.
The banking institutions Westpac Banking Corporation and DZ BANK AG Deutsche Zentral-Genossenschaftsbank, through its Singapore branch, jointly provide financing for both projects. Both banks have recognised expertise in financing renewable energy infrastructure across the Asia-Pacific region.
Significant contribution to Australia’s energy market
According to announced forecasts, the Lancaster and Mulwala plants will provide electricity production equivalent to the annual consumption of more than 30,000 Australian households. They are also expected to support local employment and regional economic activity during their construction phase. These projects occur within a context in which Australia aims at progressively reducing the carbon footprint of its electricity sector, in line with national objectives.
Catriona McLeod, Australia Country Manager at European Energy, stated Australia represents a priority market for the company: “We are pleased to strengthen our local presence thanks to the support of experienced financial institutions.”
International expansion strategy
European Energy is actively pursuing its international expansion strategy, with several solar, wind and storage projects planned in Australia. Jens Peter Zink, Deputy CEO of European Energy, emphasised these new financing arrangements “demonstrate our ability to deliver bankable renewable energy projects aligned with investment criteria.”
The group particularly emphasises favourable conditions in Australia, such as abundant solar resources, established grid infrastructure, and an increasingly supportive political framework for renewable energy investment.
This financing, officially closed on 6 June 2025, thus marks a significant step in expanding European Energy’s Australian portfolio, confirming the local market’s capacity to attract international financing.
