PVTIME – Salzgitter Flachstahl has signed a long-term hybrid power purchase agreement with the Spanish renewable energy developer Zelestra. The agreement covers 147MW of solar capacity and 79MW/237MWh of battery storage across two new facilities in Brandenburg and Thuringia. Described by both parties as the largest solar-storage hybrid PPA in Germany to date, the arrangement will supply approximately 158GWh of solar electricity annually.
This marks the first hybrid PPA between the two companies in the German market. Under the agreement, EQT-owned Zelestra will design, construct, own and operate the assets, while Salzgitter will purchase the generated solar electricity and, for the first time, assume direct operational control of the battery storage systems. The batteries will be coupled to the PV arrays and charged exclusively from surplus solar generation, enabling the steelmaker to align green power delivery with its industrial consumption profile.
Marco Hauer, group head of energy procurement at Salzgitter Flachstahl, stated that the solar-storage combination would enable the company to procure renewable energy for its industrial processes in line with demand at competitive prices, supporting its decarbonisation ambitions and ensuring the continued competitiveness of the Salzgitter production site. Mathias Künicke, chief executive of Zelestra Germany, described the deal as an innovative partnership between two forward-looking companies with a shared commitment to decarbonisation. He also indicated that the hybrid solar-storage segment was expected to grow significantly in the coming months.
The agreement supports the SALCOS low-carbon steelmaking programme of parent group Salzgitter AG. This programme encompasses a direct reduction plant, an electric arc furnace, and a 100MW electrolyser that will produce around 9,000 tonnes of green hydrogen each year. The programme is expected to require around €2.5 billion in investment, including approximately €1 billion in public funding. New production lines are scheduled to commence in the first half of 2027, with the full transformation expected to be completed by 2033. The group has already secured around 820GWh of annual green power through a series of long-term contracts.
Zelestra is concurrently expanding its German portfolio. Its 27.5MW_(DC) Klevenow solar facility in Mecklenburg-Vorpommern is already operational, generating around 28,700MWh annually. Zelestra has also signed a tolling agreement with Centrica Energy for a 99MW/297MWh standalone storage project in Lower Saxony which is planned to break ground in 2027. The company is also advancing more than 2GW of solar, hybrid, wind and storage projects across Germany.
