Power firm Engie has entered into a long-term flexibility purchase agreement with developer Ignis for 625MWh of BESS capacity in Spain.
The agreement covers several battery energy storage system (BESS) projects in Spain and gives Engie access to the assets’ flexibility over a 10-year period, while enabling Ignis to secure the revenues generated from the BESS in the electricity market.
We’ve asked Ignis to clarify the details of the deal, like the project’s ownership and what kind of commercial structure the offtake is (floor, toll, etc.).
Ignis will be responsible for operating the assets and optimising their participation in balancing services markets in Spain, and the projects will go into operation in 2028.
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“In addition to securing recurring revenue alongside a top-tier counterparty like Engie, this agreement allows us to continue maximising the value of these assets thanks to our expertise in balancing the electricity system,” said Santiago Bordiú, head of Ignis Energy.
Spain’s grid-scale storage market has been kickstarted by various EU-backed national capex subsidy schemes, namely the PERTE tender for co-located projects from a few years ago, an ongoing scheme for standalone ones and the newly-approved capacity market (CM).
But long-term private tolls are also emerging as a viable way to get large-scale projects off the ground. IPP Grenergy this year has announced decade-long offtakers for both a standalone and co-located BESS, while Zelestra was the first to announce such a deal, in mid-2025.
Engie is very active in deploying renewables and BESS globally, see all our coverage of the France-headquartered company here. It acquired synchronous condenser-paired BESS projects in Spain earlier this year.
