A major step forward in Spain’s energy storage deployment has been marked as Zelestra and EDP signed the country’s first power purchase agreement (PPA) to integrate battery energy storage with an operational solar asset, underscoring the growing importance of BESS in modern power systems.
Under the long-term agreement, Zelestra will develop a 160 MWh battery energy storage system (BESS) in Cáceres to hybridise the 50 MW Pizarroso solar plant, operational since 2023. The addition of BESS is expected to significantly enhance energy dispatch flexibility, grid stability, and real-time load balancing capabilities.
For EDP, the existing offtaker, the integration of storage will enable advanced energy management, allowing better alignment between solar generation and demand patterns while effectively addressing intermittency challenges.
Industry experts view this development as a clear signal of the transition from standalone renewable assets to storage-backed hybrid systems, where BESS plays a central role in ensuring reliability and maximising asset performance. The agreement further builds on the companies’ ongoing collaboration in Spain.
In 2025, Zelestra and EDP had already pioneered the country’s first combined solar and BESS PPA in Trujillo, Extremadura, covering 170 MW of solar capacity and 400 MWh of storage, reinforcing their focus on integrated energy solutions.
From a market perspective, the latest agreement highlights how battery energy storage systems are becoming indispensable in enabling higher renewable penetration, supporting grid stability, and unlocking greater value from solar assets.
Backed by EQT, Zelestra continues to expand its global clean energy portfolio, while EDP, with over 29 GW of installed capacity, remains a key player in driving renewable energy adoption, with more than 90% of its energy generated from renewable sources.
