Danish independent power producer European Energy has obtained £58.1 million ($78.45 million) in construction financing from Danske Bank for a combined solar and battery project in Cornwall, UK. The Indian Queens facility represents a key development in the hybrid renewable energy market, combining a 68MW solar PV capacity with a 47.5MW/95MWh battery storage system. Construction commenced in May of this year, with commercial operations scheduled to begin in 2027.
Commercial PPA and Capacity Commitments
The solar and battery project has established its commercial foundation by securing a corporate power purchase agreement (cPPA). Additionally, the project’s battery storage system component has been awarded a capacity market contract (CMC) by the UK government. In the most recent capacity market auction, battery storage assets secured 576MW in obligations, accounting for 8.02% of the total capacity awarded. The UK government subsequently announced that next year’s auction will offer 46GW of total capacity, including 40.9GW under the T-4 auction covering the next four years, up from 40GW awarded in the previous T-4 round.
Industry Perspective and Role in the Energy Market
Jakob Hjørngaard, senior banker in large corporate banking at Danske Bank, stated that the financing transaction between European Energy and the bank reflects the bank’s commitment to the renewable energy market.
Highlighting the strategic value of combining assets, Jens Peter Zink, deputy CEO of European Energy, said, “Hybrid projects are becoming an increasingly important part of the renewable energy market. By integrating battery storage with solar generation, we are creating more resilient and flexible energy assets while strengthening their long-term investment profile.”
The solar and battery project development comes amid several project milestones for European Energy worldwide, including the installation of modules at the Winton North solar project in Australia in May 2026. At the same time, the company has exited several projects in mainland Europe, including a 470MW solar-wind-storage project in Lithuania and a 151MW solar PV project in Italy.
