Spain Advances Energy Storage Integration with First Solar-BESS Hybrid PPA by Zelestra and EDP

A significant milestone in Spain’s energy transition has been achieved as Zelestra and EDP signed the country’s first power purchase agreement (PPA) to hybridise an operational solar plant with battery energy storage, reinforcing the growing role of storage in enhancing renewable energy systems.

Under the long-term agreement, Zelestra will develop a 160 MWh battery energy storage system (BESS) in Cáceres to complement the existing 50 MW Pizarroso solar plant, which has been operational since 2023. The integration of battery storage is expected to significantly improve energy dispatch, grid stability, and operational flexibility.

EDP, the current offtaker of the solar plant, will utilise the storage addition to optimise energy management, enabling better alignment between generation and demand while mitigating intermittency challenges associated with solar power.

This development reflects a broader shift in renewable energy markets, where hybrid solar-plus-storage solutions are increasingly becoming critical for ensuring reliability and maximising asset performance. The agreement also builds on the companies’ ongoing collaboration in Spain.

In 2025, the two companies had signed the country’s first combined solar and BESS PPA in Trujillo, Extremadura, covering 170 MW of solar capacity and 400 MWh of storage, highlighting a continued push toward integrated energy solutions.

From a market perspective, the latest agreement signals a transition from standalone renewable generation to flexible, storage-backed energy systems, which are essential for supporting higher renewable penetration in national grids.

Zelestra, a vertically integrated renewable energy developer backed by EQT, continues to expand its global footprint in clean energy solutions. Meanwhile, EDP, with over 29 GW of installed capacity globally, remains a key player in advancing renewable energy adoption, generating more than 90% of its energy from renewable sources.