Zelestra and steelmaker Salzgitter Flachstahl have signed a PPA for a new solar-plus-storage portfolio in Germany.
Spanish independent power producer Zelestra and German steel producer Salzgitter Flachstahl have entered into a power purchase agreement for a hybrid solar-and-storage arrangement in Germany. The accord covers two photovoltaic installations totaling 147 megawatts of capacity, integrated with 79 megawatts and 237 megawatt-hours of battery storage. Sites for the developments are designated in Thuringia and Brandenburg, with the generated electricity destined for the Salzgitter manufacturing plant.
Under the division of responsibilities, Zelestra will construct, own, and run the renewable energy plants, whereas Salzgitter Flachstahl will take all the electricity produced and oversee the battery units. Marco Huber, who heads group energy procurement for Salzgitter Flachstahl, noted that combining solar power with storage allows the company to source clean energy according to operational needs at competitive rates. He added that the arrangement aids emissions reduction targets and protects the manufacturing hub's market position.
The procurement forms part of the wider SALCOS initiative by parent firm Salzgitter AG, a 2.7 billion euro project designed to substitute coal in steelmaking with green hydrogen generated via renewables. Zelestra Chief Executive Leonardo Moreno stated on social media that the contract constitutes the largest hybrid offtake agreement finalized in Germany. The steel manufacturing group previously backed local wind energy capacity through an Avacon installation and is now moving into combined solar and storage for the first time.
Regulatory clarity arrived in May when the Federal Network Agency confirmed grid fee exemptions that had previously faced uncertainty, securing confidence and encouraging substantial project pipelines across the country. Mathias Künicke, head of Zelestra’s German operations, observed that the scale of the transaction demonstrates significant commitment from both organizations and leverages the firm's prior hybrid experience in other European markets like Spain.
Originally reported by Energy-Storage.News on Sep 16, 2026.
