IPP Zelestra and power firm and utility EDP have agreed two new hybrid power purchase agreements (PPAs) in Spain, adding 181MWdc of solar and 462MWh BESS to their existing co-operation.
The companies have agreed combined solar-plus-storage power purchase agreements (PPAs) for Zelestra’s Pedroso and Valkyria projects in Seville and Casta la Mancha respectively. Zelestra is the project owner while EDP is the offtaker.
Pedroso pairs 31MWdc of solar with a 25MW/100MWh battery energy storage system (BESS) while Valkyria pairs 150MWdc of solar with 90.45MW/362MWh of BESS.
It brings the total BESS capacity in Spain covered by a hybrid PPA between the two companies to 1,022MWh, following deals announced in April 2026 (Pizarosso) and July 2025 (Trujillo).
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The Pedroso, Valkyria and Pizarosso projects are existing PV plants which the PPA enables the addition of BESS to, while Trujillo is a greenfield solar and storage project unlocked by the PPA.
The potential of BESS to enable independent power producers (IPP) to offer ‘flat curve’ price PPAs to offtakers has been much discussed, but contracts to this end are still relatively new.
Zelestra’s last year was claimed as the first combined solar and storage PPA in Europe. Chief product officer Stefano Breda discussed it with Energy-Storage.news shortly after, calling it ‘PPA 2.0’.
Zelestra has made long-term tolls a key part of its BESS strategy, and has possibly been the first to market with structures in Italy and Germany.
Last month it signed a solar-plus-storage hybrid PPA with steel manufacturer Salzgitter Flachstahl in Germany, one of the first structures of that scale (147MW solar, 273MWh BESS) in the country. A month earlier it agreed a similarly sized standalone BESS toll with Centrica Energy.
In Italy, it has entered into tolls for its BESS capacity with power firms Axpo, EnBW and BKW all for standalone BESS projects. Its Italy CEO Eliano Russo also discussed these and how the private toll space in Italy was enabled by the MACSE auction in 2025.
Jaime Burguete, CEO of Zelestra in Spain, said: “Zelestra and EDP have built something together that is unique in the Spanish market: a commercial partnership that is unlocking large-scale storage capacity that will benefit the wider energy system. These four hybrid projects show that energy storage is bankable in Spain, and we expect this segment of the market to be the main growth area in the years ahead. It also means that every megawatt-hour moved into the evening or early morning is clean power the system would otherwise have had to find elsewhere.”
Breda said at the time of our interview that Spain-headquartered Zelestra has been able to use its experience in Chile, where hybrid PPAs are established, in pioneering the structure in Europe. It completed a 1GWh BESS there earlier this year.
