Edify Energy has reached financial close on the Smoky Creek and Guthrie’s Gap Solar Power Stations in Central Queensland, advancing what the company describes as the largest solar and battery hybrid projects currently under construction in Australia.
Located on the traditional lands of the Gaangalu Nation People, the projects will combine 720 MWp (megawatt peak) of solar generation with 600 MW (megawatts) / 2400 MWh (megawatt-hours) of battery energy storage. In addition, the hybrid projetcts are supported by advanced grid-forming inverter technology designed to strengthen system reliability and dispatchable renewable energy.
The great achievement brings together long-term support agreements with Rio Tinto, backing from the Federal Government’s Capacity Investment Scheme, and financing from a syndicate of 14 domestic and international lenders, under what Edify considers Australia’s first greenfield renewable energy portfolio financing platform.
The financing package was supported by Edify shareholder La Caisse and is intended to establish a scalable funding structure for future renewable energy developments in Australia.
Under long-term hybrid services agreements, Rio Tinto will purchase 90 per cent of the power and battery storage capacity generated by the projects over a 20-year period. The electricity will support the company’s Gladstone aluminium operations as it works to secure lower-carbon and more reliable energy supply for its industrial assets.
Edify said the projects represent one of Australia’s most advanced examples of firmed renewable energy supporting hard-to-abate industries.
Under the Australian Government’s CIS framework, the projects have been awarded long-term to accelerate investment in dispatchable renewable generation and storage, as ageing coal-fired power stations retire across the National Electricity Market.
Construction activity is expected to provide a significant economic boost to regional Queensland, with up to 800 jobs forecast during peak construction. Edify said the developments would also support apprenticeships, skills training and long-term procurement opportunities for local businesses, including Australian steel suppliers.
A community benefits program extending beyond 35 years has also been established, alongside commitments tied to local content and First Nations engagement under the Capacity Investment Scheme agreements.
“Smoky Creek and Guthrie’s Gap are critical projects in the energy transition, generating cost-effective, reliable and dispatchable renewable energy,” said Ben Warne, Chief Executive Officer at Edify Energy.
“These projects will strengthen Queensland’s and Australia’s energy system while delivering lasting benefits for the communities of the Banana Shire and the Gaangalu Nation People.”
