Zelestra and EDP add Pedroso and Valkyria PPAs to lift Spanish storage past 1 GWh

Zelestra and EDP have extended their hybrid solar-plus-storage partnership in Spain with two new power purchase agreements that add roughly 462 MWh of battery storage to 181 MWdc of operating solar capacity. With the agreements, signed and announced on October 5, 2026, the collaboration now spans four hybrid projects and more than 1 GWh of contracted storage in the country.

New deals cover Seville and Castilla La Mancha sites

The long-term agreements cover two plants that are already generating power. At Pedroso in Seville, Zelestra will develop a 25 MW battery energy storage system of approximately 100 MWh alongside the existing 31 MWdc solar plant. At Valkyria in Castilla La Mancha, a 90.45 MW BESS of approximately 362 MWh will be paired with 150 MWdc of solar capacity.

Both systems are designed for four-hour duration. EDP already serves as the offtaker for both solar plants. According to the announcement, the company is building a leading position in the offtake of battery storage assets in the Spanish market.

From first-of-a-kind deals to a four-project portfolio

The Pedroso and Valkyria agreements build on a run of firsts between the two companies. In 2025, EDP and Zelestra signed Spain's first combined solar and BESS PPA, covering 170 MWdc of solar capacity and 400 MWh of storage at Trujillo in Extremadura. That deal was signed in July 2025. Earlier this year, in April 2026, the pair signed the country's first PPA to hybridise an operational solar plant, adding a 160 MWh BESS to the 50 MW Pizarroso plant in Cáceres. Taken together, the four projects represent more than 1 GWh of contracted storage, which the announcement describes as the most extensive contracted hybrid solar-plus-storage portfolio announced in Spain to date under the partnership.

Hybridisation offers a faster route to flexibility

According to the announcement, hybridising plants that are already operating is one of the fastest routes to a more flexible Spanish grid. Because the land, the grid connection, and the generation are all already in place, storage capacity can be added without the lead times associated with entirely new projects. Jaime Burguete, CEO of Zelestra in Spain, said the partnership had created something distinctive for the Spanish market.

"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," he said.

"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."

EDP frames storage as a decarbonisation lever

For EDP, the deals reflect a broader strategy built around flexibility assets. Pedro Neves Ferreira, CEO of Global Energy Management at EDP, said the company's approach to innovation goes beyond deploying renewable generation alone.

"At EDP, innovation goes beyond deploying renewable generation. We are continuously developing new solutions that combine technology, market expertise and flexibility assets to unlock greater value from clean energy," he said. "By integrating storage with renewable generation, we can enhance system resilience, improve efficiency and accelerate the electrification and decarbonisation of the economy."

The deals fit into Zelestra's wider storage push

The Spanish agreements come amid a broader stretch of storage activity for Zelestra internationally. In May 2025, the company signed a major BESS agreement with Sungrow for 1 GWh of energy storage at the Aurora hybrid project in Chile.

In September 2026, Salzgitter Flachstahl and Zelestra signed the largest hybrid solar-plus-energy-storage contract in Germany, to supply green electricity for low-carbon steel production. In Spain, the company's work with EDP has advanced project by project: the Trujillo agreement in July 2025, the Pizarroso hybridisation PPA in April 2026, and now the Pedroso and Valkyria deals announced on October 5, 2026, bringing the partnership past the 1 GWh mark.