Construction has officially commenced on the Muswellbrook Solar Farm and Battery project in New South Wales, marking a significant step forward for the state’s renewable energy transition. The 135 MWac solar farm, paired with a 100 MW battery energy storage system (BESS), is located within the critical Hunter Central Coast Renewable Energy Zone (REZ).
Swedish renewable energy developer OX2 announced on Monday, May 18, 2026, that construction would begin immediately, with completion expected in 2028. The project, situated approximately 2.5 kilometres east of Muswellbrook on land formerly associated with the Muswellbrook Coal Mine, represents a strategic repurposing of industrial land for clean energy generation. Once operational, the facility is projected to generate approximately 347 GWh of clean electricity annually, sufficient to power around 52,000 homes.
“This investment highlights our long-term commitment to Australia and supports our growth as an independent power producer,” stated Matthias Taft, CEO of OX2, in the company’s announcement.
The project is OX2’s first owner-operator venture in Australia, a market the company entered in 2023.
Project Scope and Partners
The Muswellbrook Solar Farm and Battery project encompasses 135 MWac of solar photovoltaic (PV) capacity and 100 MW of battery storage. The battery component is designed for up to two hours of storage, implying a capacity of approximately 200 MWh, crucial for stabilising the grid and managing peak demand. This hybrid configuration allows for the continuous supply of renewable energy, even when solar generation is low. Such large-scale battery systems are increasingly vital for grid reliability, helping to avoid peak demand charges and slash your time-of-use electricity bills in Australia in 2026 across the network.
Co-developed with Idemitsu Australia, the project continues their involvement as a long-term landholder of the site. The engineering, procurement, and construction (EPC) is being handled by a joint venture between Bouygues Construction Australia and Equans Solar and Storage Australia (BYESSA). Project financing has been secured with MUFG acting as the Sole Structuring Coordinator and Mandated Lead Arranger, Underwriter, and Bookrunner.
A significant portion of the project’s output has already been secured through a long-term hybrid Power Purchase Agreement (PPA) with an international offtaker. Notably, Amazon has contracted 94.5 MW of PV and 70 MW of battery capacity from the Muswellbrook project, integrating it into their renewable energy portfolio.
Economic and Community Impact
The Muswellbrook project represents a substantial investment in the region’s future, with an estimated total cost of AUD 302 million (as of 2023). Beyond its energy contribution, the development is expected to create up to 200 jobs during the construction phase. OX2 has also committed to a Voluntary Planning Agreement (VPA) with Muswellbrook Shire Council, which includes an annual contribution of approximately AUD 115,000 to community benefit programs.
This initiative aligns with New South Wales’ broader strategy to transition away from coal-fired power and bolster its renewable energy infrastructure. The Hunter Central Coast REZ itself is designed to unlock significant new generation and storage capacity, with the NSW government targeting at least 16 GW of new renewable energy generation by 2030. Projects like Muswellbrook are crucial for ensuring energy security and contributing to the state’s emissions reduction targets. The ongoing shift in Australia’s energy landscape, driven by projects such as this, underpins broader efforts to provide energy bill relief in Australia 2026: Understanding the End of Universal Federal Payments and State Support for consumers through a more diverse and resilient supply.
Transitioning from Coal
The choice of location, on land previously used for coal mining, underscores a national trend towards rehabilitating former fossil fuel sites for renewable energy production. This transformation not only provides new economic opportunities for regional communities but also directly supports Australia’s commitment to a cleaner energy future. The Muswellbrook Coal Mine ceased operations in 2022, and its redevelopment into a renewable energy precinct signals a tangible shift in the Hunter Valley’s industrial identity.
The project’s approval process, which included a referral for fresh assessment due to public objections, ultimately concluded that the site was suitable and the project was in the public interest, aligning with NSW renewable energy and emissions targets. This demonstrates the rigorous assessment framework in place for large-scale energy developments in Australia, balancing environmental considerations with the urgent need for new power generation capacity.
Key Project Details
| Feature | Detail |
|---|---|
| Project Name | Muswellbrook Solar Farm & Battery |
| Developer | OX2 (Owner-operator), Idemitsu Australia (Co-developer) |
| Location | Hunter Central Coast REZ, Muswellbrook, New South Wales |
| Solar Capacity | 135 MWac |
| Battery Storage (BESS) | 100 MW (up to 2 hours / 200 MWh) |
| Annual Output | 347 GWh |
| Homes Powered | Approximately 52,000 |
| Estimated Cost | AUD 302 million (2023 figures) |
| Construction Start | May 18, 2026 |
| Expected Completion | 2028 |
| Key Offtaker | Amazon (contracted 94.5 MW PV, 70 MW BESS) |
| Community Contribution | AUD 115,000 annually to local programs |