Renewable energy firm Zelestra has signed a long-term power purchase agreement (PPA) with Portuguese utility EDP for a combined solar and battery storage project in Spain, marking the first agreement of its kind in the country’s energy market.
The project, to be developed in Trujillo, Extremadura, will feature 170 megawatts direct current (MWdc) of solar generation capacity and 400 megawatt-hours (MWh) of battery storage. The hybrid design ensures that the battery component can be fully charged daily by the solar plant, regardless of weather conditions.
According to Zelestra, the agreement will give EDP access to clean electricity outside of typical solar production hours, particularly during periods of high demand and elevated power prices. “This will allow EDP the flexibility to have clean energy outside of ‘normal solar hours’ and at traditionally high-demand, high-price periods of time,” the company said.
The facility is expected to produce approximately 300 gigawatt-hours (GWh) of electricity annually and avoid more than 40,000 tonnes of carbon dioxide emissions each year. The system is designed to help displace fossil fuel generation—particularly natural gas plants—that are typically used to meet peak demand.
The partnership reflects a broader trend in Spain’s energy market toward hybrid renewable solutions that enhance grid flexibility and reduce emissions intensity.