Canadian Solar's e-STORAGE Lands 100 MW/200 MWh Battery Contract for OX2 Project in NSW, Australia

A 100 MW/200 MWh battery energy storage system will be supplied and commissioned by e-STORAGE, the energy storage arm of Canadian Solar Inc. (NASDAQ: CSIQ), for OX2's Muswellbrook Solar Farm and Battery in New South Wales, Australia.

Storage to Firm Solar Output Under Long-Term Hybrid PPA

Canadian Solar announced the agreement on Oct. 6, 2026. Once operating, the system will underpin the long-term hybrid power purchase agreement OX2 has secured for the project, turning variable solar generation into firm, contracted supply and strengthening grid reliability as the Hunter Region moves away from coal-fired electricity.

OX2 Australia Vice President Steve Symons said the battery is what makes Muswellbrook a genuine hybrid facility, capturing energy while the sun shines and delivering it when the grid needs it most. He described it as a key step in providing firm, reliable renewable power to the Hunter region.

Deliveries Set for 2027 With Commercial Operation in 2028

Shipments of the battery system are scheduled to begin in the third quarter of 2027, and commercial operation is targeted for the third quarter of 2028. The scope of work places e-STORAGE in charge of the R1 grid connection studies, the hybrid power plant controller that coordinates the battery with the co-located solar farm, and the overall integration and commissioning of the combined project. The arrangement also includes a 20-year long-term service agreement, meaning hardware, proprietary software, and long-term performance sit with a single accountable partner.

Jeff Roy, President of e-STORAGE, 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, and that controlling the project from the cell through the energy management software and 20 years of service gives OX2 one partner accountable for performance over the system's full life.

SolBank 3.0 Hardware Paired With In-House Software

At the core of the delivery are SolBank 3.0 battery containers, combined with Power Conversion Systems, plant controls, and e-STORAGE's proprietary EQ-S Energy Management System. The EMS was developed and built in-house by the company's North American software team. Battery cells and the SolBank system will be manufactured at Canadian Solar's own facilities, which the company says provides end-to-end supply chain visibility and strict quality control across the product.

Repurposing Coal Mine Land in the Hunter REZ

The project site lies about 2.5 kilometers east of Muswellbrook, on land previously occupied by a coal mine inside the Hunter-Central Coast Renewable Energy Zone. The location carries particular weight as the region's aging coal generators approach retirement in the early 2030s, since the dispatchable capacity they historically provided must be replaced. The two-hour storage duration is designed to address this directly, absorbing midday solar generation and discharging it into the evening demand peak as supply from retiring thermal plants tightens.

The Companies Behind the Deal

Canadian Solar, established in 2001 and based in Kitchener, Ontario, ranks among the world's largest solar technology and renewable energy companies and has been listed on NASDAQ since 2006. Over 25 years it has supplied nearly 180 GW of solar photovoltaic modules worldwide.

Through e-STORAGE it has shipped more than 23 GWh of battery energy storage solutions globally, with a contracted backlog of USD 3.5 billion as of June 30, 2026. Since entering project development in 2010, the company has developed, built, and connected roughly 12.4 GWp of solar projects and 6.4 GWh of battery storage projects, holding a pipeline of about 22 GWp of solar and 84 GWh of battery storage at various stages.

e-STORAGE, a Canadian Solar subsidiary, focuses on designing, manufacturing, and integrating utility-scale battery energy storage systems, offering proprietary products spanning battery cells, battery PACKs, power conversion systems, energy management systems, and system integration, alongside EPC services and full-lifecycle station operation and asset management.