“A cracking result:” Solar hybrids steal the show as big wind struggles to land finance
Artist Impression, Smoky Creek and Guthrie’s Gap Solar Power Stations. Image: Edify Energy.
Giles Parkinson
Oct 9, 2025
CleanTech Bites
The winners of nearly a dozen solar hybrids are celebrating their landmark wins in the federal government’s Capacity Investment Scheme on Thursday, and are expected to move quickly to construction, unlike some of the big wind projects that also won underwriting agreements.
As Renew Economy reported earlier on Thursday, the federal government awarded contracts to 20 wind and solar projects totalling 6.5 GW of capacity, but the winners were dominated by solar battery hybrids, which is now emerging as a major competitor to wind because of the plunging price of battery storage.
The most successful bidder in the latest round is Edify Energy, fresh from an agreed $1.1 billion sale to Canada’s la Caisse, which won for three solar battery hybrid projects, adding to the two it won in the first tender announced late last year.
“This is a cracking result for the Edify team and a strong endorsement of our cutting-edge solar power station design,” CEO John Cole said in a statement.
“By harnessing top-tier technologies, we will deliver stable, firm dispatchable solar energy – efficiently and at the times of day it is most needed. Edify is once again at the forefront of Australia’s energy transition, driving innovation and new energy system infrastructure.”
The most interesting thing about the Edify projects is that two of them – the neighbouring Smoky Creek and Guthrie’s Gap in Queensland, which will both feature 300 MW of solar, and 300 MW, 11,200 MWh of battery storage – have locked in contracts to help power Rio Tinto’s giant smelters and refineries in Gladstone.
Nothing quite spells out the energy transition as much as renewables and batteries displacing coal to power the biggest industries and energy consumers. Rio Tinto has already flagged the early closure of the Gladstone coal generator, Queensland’s biggest, because it says the smelter has no future if powered by fossil fuels.
Edify is expected to move quickly to financial closure for those two assets, and possibly its other winning projects, with the fresh new capital from La Caisse.
The contracts with Rio Tinto and the underwriting agreement with the CIS are symbiotic – and help the company negotiate both a good price for Rio, and present a lower financial risk and burden on the federal government, and meet some of the other goals of the CIS such as local steel consumption.
Australia currently hosts just one solar battery hybrid – at Cunderdin in Western Australia, which is injecting solar power into the grid well into the evening – but none in the country’s main grid.
See: The solar farm that winds down at dusk, charges up for dinner and is still generating at midnight
That will change rapidly with the CIS alone supporting 17 such solar battery hybrid projects – many at a much bigger scale than Cunderdin – and all looking to commercial and industrial customers who like the production profile of the combined technology. Others, such as Fulham in Victoria, are already in construction.
Solar battery hybrids are considered the big new thing in the Australian energy transition. They differ from existing co-located solar and battery projects because they share the same connection point, and can help solar projects dodge negative prices and inject power into the more lucrative evening peaks.
The position is more complicated for the eight big wind projects that won a CISA (CIS agreement) in the latest tender, with some – such as AGL’s big 600 MW Hexham wind project in Victoria – looking out to 2028 before a financial commitment is made.
AGL does not expect to secure planning approval until next year for the project, located around 15 kms east of Mortlake in south-east Victoria, which it is developing with Wind Prospect. AGL has an option to buy an interest in the project should it go ahead.
“At 600 MW the Hexham wind farm would be one of the largest in Victoria and provide important renewable energy for the state should it receive Final Investment Decision,” said AGL’s head of power development Travis Hughes.
“We have several wind projects in our development pipeline and we continue to progress our efforts to bring new large-scale wind to the market in the coming years.” The company is also working on the Barn Hill project in South Australia and its jointly owned Pottinger energy hub in NSW.
The biggest project winner, in terms of connection capacity, is the 660 MW first stage of the long awaited Liverpool Plains project in NSW, being developed by Tilt Renewables with plans to double in size to 1.3 GW.
Liverpool Range has won grid access rights in the Central West Orana renewable energy zone in NSW, and is currently seeking approval for an on-site quarry to supply the project, and hopes to reach FID next year, subject to the progress in building the new grid infrastructure.
“Securing a CISA is a key milestone to support the commercialisation of Stage 1 of the Liverpool Range project,” Tilt CEO Anthony Fowler said in a statement.
Like its Palmer wind project in South Australia, a winner in the first tender announced late last year, it will be seeking a strong off take agreement. Tilt just secured a long term PPA with AGL for Palmer, and its expected it will be the first wind project from that tender, and the first of any wind project in the country, to reach FID in 2025.
See: Australia’s wind energy drought set to be broken as AGL signs 15-year contract with South Australia project
One wind project winner that should not have difficulty reaching FID is the second stage extension to the Willogoleche wind farm in South Australia, put forward by Engie and Foresight.
This project proposes to add 20 turbines and 108 MW of capacity to the existing 119 MW wind farm, located north of Hallett. Engie says it expects to begin construction in 2026 and finish the addition in 2028.
Willogoleche wind farm. Image: Engie.
Engie Australia’s Managing Director of Renewables and Batteries, Laura Caspari, said Willogoleche had been a hallmark of successful renewable energy development, and a perfect site for expansion.
“The development and operation of the first stage of Willogoleche has enjoyed great community support, and for years has been the jewel in the crown of Engie’s South Australian renewables portfolio,” said Engie Australia’s head of renewables and batteries, Laura Caspari.
“With the additional backing of the Federal Government, Willogoleche will go from strength to strength.”
Foresight Australia’s executive director says there is “strong and growing appetite” for projects like Willogoleche 2 ,which can leverage the existing platform footprint and capability to unlock new clean energy and storage capacity.
Engie is offering annual electricity rebates of up to $1,000 through its retail arm to eligible near neighbours of the project, and a separate dedicated First Nations benefit fund, and community grants program.
See our original story for list of winners: Solar battery hybrids lead the charge as Chris Bowen names 20 winners of 6.5 gigawatt CIS tende
reneweconomy.com.au |
