​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 CIS contract 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.

Project financing also included a battery addition to Muswellbrook Solar Farm, Jinbi Solar Project, and Plus Grid Storage’s New South Wales BESS Portfolio. In M&A, Northern Border Battery and Summerfield Battery changed ownership during the quarter.

Meanwhile, developers signed eight offtake agreements across six projects. Four were hybrid PPAs with Amazon. Jinbi Solar in Western Australia was the only standalone project to secure an offtake agreement. The PPA supports Rio Tinto's Pilbara iron ore operations and also references a potential future battery addition.

Western Downs Battery Stages 2 and 3 secured two separate virtual tolling agreements with different counterparties. This highlights the opportunity in stacking revenue contracts.

Orana BESS also secured a virtual toll with Energy Australia for almost half its capacity. It announced this at the same time as it announced the start of commercial operations. Orana is also supported by an LTESA with the New South Wales government.

How does this compare to previous quarters?

Q2 set a new record for utility-scale offtake agreements, half driven by Amazon's procurement. By comparison, project financing sat slightly below recent averages, while M&A activity fell to its lowest level.

This reflects a transition in the market where earlier-stage hybrid projects are getting off the ground, while standalone momentum is slowing.

Queensland led the market with 1.9 GW of transacted capacity. Meanwhile, New South Wales recorded the highest number of deals, including three standalone batteries and three hybrid projects.

Who financed and sponsored the quarter?

Many financing participants remained undisclosed, including the 14 Australian and international lenders backing Edify's projects. However, the lending syndicate likely includes several institutions that have appeared repeatedly in recent quarters, including Deutsche Bank, Westpac, Commonwealth Bank, Bank of China, HSBC, ING, Mizuho and SMBC.

Elsewhere, Energy Security Corporation supported the Plus Grid Storage (Ausgrid) BESS portfolio, while ANZ financed Yindjibarndi Energy Corporation's Jinbi Solar Project.

Project ownership was also broadly distributed.

No developer progressed more than one project during the quarter. That breaks the recent pattern where Octopus Australia progressed 2-3 projects in each of the last two quarters.

Who provided the offtake agreements?

Amazon led utility-scale offtake activity during Q2. The company signed four hybrid PPAs to secure firm renewable electricity for future Australian data centre demand.

Neoen's Western Downs battery stacked two virtual tolls. Nectr contracted capacity across Stages 2 and 3, while SmartestEnergy separately secured a 50 MW toll on Stage 3. Energy Australia announced Orana BESS, which reached commercial operations on 24 June.

Rio Tinto also signed a PPA with the Yindjibarndi-led Jinbi Solar Project in Western Australia. This was the quarter’s only standalone solar project, but the development includes plans for a potential future battery.

Battery durations reflect 4-hour standard, including in hybrids

Transacted BESS durations held at a 4-hour median across the 8 deals that disclosed a duration. Four-hour systems continue to set the standard for new utility-scale storage.

What should the market watch for in Q3 2026?

Developers signed more offtake agreements than financings during Q2. Because contracted revenue often unlocks project finance, the next question is whether these projects reach financial close over the coming quarter.

Government support could accelerate the process. The Capacity Investment Scheme awarded 4.2 GW of standalone batteries on 24 June. CIS Tender 9, covering 5 GW of National Electricity Market generation expected to include co-located storage, closes in July, and CIS Tender 10, the likely final dispatchable round, closes in August.

Additionally, New South Wales LTESA Rounds 8 and 9 are seeking 2.5 GW of generation and 12 GWh of long-duration storage. Importantly, the new Hybrid Generation LTESA is built for the solar-and-battery projects that have struggled to reach close on merchant terms.