Central Queensland is set to host Australia’s largest solar and battery hybrid projects currently under construction, with Edify Energy reaching financial close on its AUD$1.1 billion Smoky Creek and Guthrie’s Gap power stations. This significant milestone, announced this week, will deliver 720 MWp of solar generation alongside a substantial 2,400 MWh battery energy storage system (BESS), marking a critical step in the nation’s energy transition.
The projects, located on the traditional lands of the Gaangalu Nation People in Banana Shire, secured financial backing from a syndicate of 14 domestic and international lenders. Malaysian infrastructure conglomerate Gamuda’s Australian unit, DT Infrastructure, has been awarded the Engineering, Procurement, and Construction (EPC) contracts, valued at approximately AUD$1.1 billion (RM3.12 billion).
These facilities are slated for delivery and commencement of operations in 2028 and represent a major commitment to firmed renewable energy for heavy industry. A 20-year hybrid services agreement is in place with mining giant Rio Tinto, which will purchase 90% of the power and storage capacity to supply its Gladstone aluminium operations with lower-carbon electricity.
Accelerating Queensland’s Renewable Energy Future
The Smoky Creek and Guthrie’s Gap projects are a direct outcome of the Australian Government’s Capacity Investment Scheme (CIS) Tender 4, which provides revenue underwriting to de-risk investments and accelerate the deployment of renewable energy and dispatchable capacity. This strategic government support is crucial for attracting the scale of investment required to transition away from fossil fuels and enhance grid stability.
Energy Minister Penny Sharpe has previously highlighted the importance of such large-scale projects, noting their role in future-proofing Australia’s electricity system. These developments are not only about generating clean energy but also about providing essential grid services through advanced grid-forming inverter technologies, which are vital for maintaining network stability as more intermittent renewables come online.
“The financing package brings together 14 domestic and international lenders in what Edify Energy said is a first-of-its-kind greenfield renewable energy portfolio financing structure in Australia.”
Project Scale and Impact
The combined 720 MWp of solar photovoltaic (PV) capacity positions these projects as significant contributors to Queensland’s energy mix. To put this in perspective, a typical 6.6 kW residential solar system might cost between AUD$5,000 and AUD$6,000 after rebates in 2026. These utility-scale installations dwarf individual rooftop solar efforts, though both are critical for the broader energy transition. Homeowners considering solar might find value in understanding Your 2026 Guide: What Size Solar System Do I Need & How Much Will It Cost in Australia? to compare scales.
The 2,400 MWh of battery storage capacity is particularly impactful. This substantial storage will allow generated solar power to be dispatched during evening peak demand periods, effectively addressing the “solar mismatch” inherent in solar generation. Australia’s grid is increasingly relying on such large-scale battery systems to stabilise supply and manage fluctuations from renewable sources. For more on this, refer to How Australia’s Battery Boom is Stabilising the Grid and Cutting Prices in 2026.
Project Specifications at a Glance
| Feature | Smoky Creek and Guthrie’s Gap Projects (Combined) |
|---|---|
| Developer | Edify Energy |
| Location | Banana Shire, Central Queensland |
| Solar Capacity | 720 MWp |
| Battery Storage (BESS) | 600 MW / 2,400 MWh |
| EPC Contractor | DT Infrastructure (Gamuda) |
| EPC Contract Value | Approximately AUD$1.1 billion |
| Primary Offtaker | Rio Tinto (Gladstone aluminium operations) |
| Offtake Agreement | 20-year hybrid services agreement |
| Government Support | Capacity Investment Scheme (CIS) Tender 4 |
| Target Operation Date | 2028 |
The integration of advanced grid-forming inverter technologies in these projects is designed to provide low-cost, reliable, and dispatchable renewable energy. This is crucial for strengthening Queensland’s energy system and supporting industrial demand as older thermal generation assets are retired. The projects are expected to enhance reliability and contribute significantly to the state’s renewable energy targets.
Broader Implications for Australia’s Energy Mix
Edify Energy’s latest financial close represents a growing trend of large-scale, firmed renewable projects gaining traction across Australia. Such hybrid solar and battery systems are becoming the backbone of the National Electricity Market (NEM), providing not only clean power but also the stability and dispatchability traditionally associated with fossil fuels.
The commitment from Rio Tinto highlights the increasing demand from heavy industry for reliable, lower-carbon energy solutions to meet their own decarbonisation goals. This commercial certainty, coupled with government underwriting through schemes like the CIS, is accelerating the transition and attracting substantial private capital.
As Australia continues its push towards an 82% renewable energy target by 2030, projects of this scale are indispensable. They demonstrate the viability of large-scale solar and battery integration, setting a precedent for future developments and reinforcing the economic benefits of a renewables-led grid. Australian households can also play a role in this transition, and understanding how to maximise savings from their own solar systems, including strategies to How to Avoid Peak Demand Charges and Slash Your Time-of-Use Electricity Bills in Australia in 2026, contributes to overall grid efficiency and personal energy independence.