​Australian utility-scale battery and solar capital markets recorded 14 publicly announced deals in Q2 2026. These included two M&A transactions, four project financings, and eight offtake agreements. Notably, hybrid solar-and-battery projects accounted for as many deals as standalone batteries for the first time. That marks an important shift in investor and buyer appetite.

Financing of Smoky Creek and Guthrie’s Gap Solar & Battery (600 MW battery and 720 MW solar, Queensland) represents a milestone for hybrid investment, as Australia’s largest solar and battery hybrid project, and first reverse DC-coupled.

Amazon signed nine renewable Power Purchase Agreements (PPAs), four of which were utility-scale (≥5MW) solar-and-battery hybrids. These agreements support Amazon's expanding data centre and AI operations, while reinforcing the value of renewable generation firmed by storage.

This is Modo Energy's quarterly read on Australian battery, solar, and hybrid capital markets. We track: financing (project debt and equity investment), M&A (mergers and acquisitions), and offtake agreements (revenue contracts). We also compare activity with previous quarters. Q1 2026’s edition can be found here.

Executive summary

• Hybrid solar-plus-storage deal count matched standalone batteries for the first time.
• Smoky Creek and Guthrie’s Gap Solar & Battery reached financial close, as Australia's largest hybrid project and the first reverse DC-coupled.
• Amazon signed half of the offtake agreements, with every contract supporting hybrid projects that supply firm renewable energy to future data centres.
• Ownership was broadly distributed. No developer progressed more than one project, breaking from Q1 2026 when Octopus Australia alone accounted for three.

Hybrid assets led the quarter

Q2 2026 was led by hybrid projects reaching scale in both financing and contracting.

The standout deal was the financing of Edify Energy's Smoky Creek and Guthrie's Gap in Queensland. These projects are set to be the NEM’s first reverse DC-coupled system, and the largest solar-battery hybrid. The financing brought together 14 domestic and international lenders, which committed approximately ~$3.2 billion across these projects and other approved developments.

Smoky Creek and Guthrie's Gap also secured a and a 20-year power purchase agreement with Rio Tinto covering 90% of project output. The electricity will supply Rio Tinto's Gladstone aluminium operations. Together, these agreements show what supports lenders’ financing of large-scale co-located solar and storage.