​Australian renewables and storage capital returned in Q3 2026. Transacted capacity more than doubled from Q2, to 8.5 GW. This is the busiest quarter since Modo Energy started tracking in January 2025. Most of the jump came through project finance: 4.9 GW, against 1.8 GW in Q2.

The mix is shifting back towards generation. After a year led by standalone batteries, deals involving solar or wind made up 67% of the quarter, up from 25% a year earlier. Contracted and transacted battery capacity still grew, to a high of 3.1 GW, but more now sits inside hybrids.

This is Modo Energy's quarterly read on Australian project finance, equity investment, mergers and acquisitions (M&A) and offtakes. Earlier quarters are restated to include wind.

Methodology. Figures reflect publicly announced deals, so actual deal flow may be higher. Portfolio-level deals count towards deals but not MW. Prior quarters are restated as announcements are confirmed or revised.

Executive summary

Q3 was the busiest quarter since Modo Energy began tracking in January 2025. 30 deals covered 8.5 GW, up from 17 deals and 3.8 GW in Q2 2026.

Wind was financed for the first time in 2026, with Gawara Baya and Kondinin reaching financial close. Squadron Energy also refinanced its wind portfolio.

Hybrids made up 53% of transacted capacity, the highest share to date, and up from 27% a year earlier.

Syndicates are financing larger projects. The two largest financings drew 15 and 11 banks respectively; single smaller projects drew five or fewer.

Data centres led offtakes again. Amazon and Microsoft signed four of the nine agreements, covering 550 MW of projects.

Project financing accelerated in Q3 2026 for both renewables and storage

Project and portfolio financing count more than doubled from five in Q2 to twelve in Q3. Major projects include Edify Energy’s Ganymirra and Majors Creek solar-plus-BESS in Queensland, Aware Super and Birdwood’s Baranduda battery in Victoria, and Quinbrook’s Supernode Stage 3 in Queensland.

Gawara Baya in Queensland and Kondinin Stage 1 in Western Australia were the first wind projects to reach financial close in 2026. Gawara Baya also announced contracted capacity across two offtakers: SmartestEnergy, which takes 40% of the wind for eight years, and Stanwell.

The largest financing by capacity was a refinancing. Squadron Energy's A$2.7 billion package covers 1.5 GW of wind, five operating farms plus Uungula under construction.

Hybrids were 53% of capacity transacted and contracted

Hybrids took 53% of the quarter's capacity, up from 49% in Q2 and 27% a year earlier. Hybrids diversify revenue across generation and storage, while co-locating reduces development, connection, and operations costs.

Solar was never financed or sold on its own: every solar megawatt in financings and acquisitions sat inside a hybrid. Standalone solar appeared only in offtakes, through Microsoft's PPAs at two newly operating farms.

Meanwhile, batteries and wind appeared in all three deal types, standalone and in hybrids.

Data centres topped the offtaker leaderboard again

Amazon and Microsoft signed four of the nine offtakes, and their contracts show data centres want firmed supply. Amazon signed a battery PPA at Winton North and a toll on the 50 MW Bairnsdale battery, its first standalone battery toll in the Asia-Pacific. Microsoft signed solar PPAs at Goorambat East and Carwarp.

Government-owned buyers took much of the rest. Victoria's State Electricity Commission (SEC) took a stake of up to A$43 million in Baranduda and half its output for 15 years, acting as investor and offtaker. Western Australia's Synergy contracted Narrogin's full output, and Queensland's Stanwell joined Smart Energy at Gawara Baya, where Smart Energy holds 40% of the wind.

Capital was spread across many owners rather than repeat players

Ownership was spread out: 20 owners across 22 projects, with only European Energy and Palisade's Intera Renewables on more than one.

The quarter’s international owners represent the global interest in the Australian market. This includes Denmark (CIP, European Energy, Vestas), France (Neoen, ENGIE), Sweden (OX2), Spain (Naturgy), Singapore (BW ESS, Vena Energy) and beyond.

Victoria was the leading state for capital

Victoria led on deal count, with 11 deals across eight projects: three standalone batteries, three hybrids and two solar farms.

Queensland led on capacity, at 3.9 GW, through large solar hybrids and two wind-and-battery projects.

The technology mix suggests high-level state development trends. New South Wales, Victoria, and South Australia activity was limited to solar and BESS, including hybrid versions. Queensland mixed in wind hybrids as well as solar hybrids. Western Australia and Tasmania carried only wind activity.

Larger project financing volumes needed syndicates

Syndicate size tracked deal size. Squadron's A$2.7 billion refinancing drew 15 banks, Vena Energy's A$1.4 billion portfolio package 11, and Gawara Baya's A$1.7 billion facility 10 unnamed banks.

Single projects needed fewer: Kondinin and Supernode Stage 3, each around A$450 million, drew five banks each. Spreading large loans across many lenders keeps each bank's exposure manageable.

What to watch from here

Q4 often brings a year-end push to close deals. As the market absorbs a year of battery build-out, owners are pairing storage with new generation. Co-location cost savings and diversification across complementary storage and generation revenue profiles drive this.

Whether early data centre ambition holds remains uncertain: if their build-outs slow on rumoured commercial delays, the offtakes they underwrite could slow too.

AUD$1.3 billion Richmond Valley Solar and BESS in New South Wales has reached FID, with financial close expected by year-end. Waroona Renewable Energy Project, set to be Western Australia’s largest solar-plus-BESS hybrid, also announced a funding package this quarter but has not yet confirmed financial close. November's expected Capacity Investment Scheme results will also set the next candidates for close.

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frances@modoenergy.com