e‑STORAGE, a subsidiary of Canadian Solar, has agreed to supply and commission a 100MW/200MW-hour (MWh) battery energy storage system for OX2’s Muswellbrook Solar Farm and Battery project in New South Wales, Australia.

The shipment of equipment is expected to start in the third quarter of 2027 (Q3 2027), with commercial operations anticipated by Q3 2028.

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The battery cells and the SolBank system deployed at the project will be manufactured internally at Canadian Solar’s facilities.

This arrangement is expected to offer OX2 greater visibility over its supply chain and tighter quality control throughout the production process.

The energy storage system will use SolBank 3.0 battery containers and will be integrated with power conversion systems and plant controls.

The project will also incorporate e‑STORAGE’s EQ-S Energy Management System, designed and developed by its North American software team.

According to Canadian Solar, e‑STORAGE will take charge of R1 grid connection studies, provide the hybrid power plant controller for coordination with the co-located solar farm, and manage the full integration and commissioning of the hybrid installation.

The agreement also includes a 20-year long-term service arrangement covering hardware, software and system performance under a single provider.

The project site is situated around 2.5km east of Muswellbrook within the Hunter-Central Coast Renewable Energy Zone, on land that formerly housed a coal mine.

This region is undergoing a transition as existing coal-fired power stations approach their expected retirement in the early 2030s.

The two-hour storage capability aims to balance midday solar output with peak evening electricity demand, compensating for the decline in supply from retiring coal plants.

The project is set to underpin a long-term hybrid power purchase agreement OX2 has signed for the site, aiming to provide firm, contracted renewable energy from variable solar generation.

e‑STORAGE president Jeff Roy said: “Australia’s energy transition is being decided in regions like the Hunter, where storage now has to carry the load that retiring coal once did.

“We control this project from the cell through to our own energy management software and 20 years of service, which means OX2 has one partner accountable for how the system performs over its full life.”

In August 2026, Recurrent Energy, a Canadian Solar subsidiary, arranged $695m in project finance and tax equity for the construction of its 330MW Cobalt Solar facility in Riverside County, California, US.