GERMANY —Zelestra and Salzgitter Flachstahl have entered a long-term power purchase agreement covering two new hybrid solar and battery projects in Germany. The facilities, planned for Brandenburg and Thuringia, will combine 147 MW of solar generation with 79 MW/237 MWh of directly connected battery storage.
Under the arrangement, Zelestra will develop, own and operate both hybrid plants. Salzgitter Flachstahl will purchase a combined 158 GWh of solar electricity annually and will control the operation of the associated battery systems. The storage assets will be charged exclusively using surplus electricity produced by the solar plants, allowing stored renewable power to be used when it better matches the steel producer’s consumption profile.
The structure is significant for energy-intensive manufacturing because it links contracted renewable generation with flexible storage rather than relying solely on direct solar supply. This can give an industrial electricity buyer greater flexibility in managing variable renewable generation and consumption while increasing its access to renewable power.
For Salzgitter Flachstahl, the agreement forms part of the electricity supply strategy supporting the SALCOS framework, under which Salzgitter is transforming its steel production toward lower-carbon processes. Reliable access to renewable electricity is increasingly important for the competitiveness and emissions profile of energy-intensive steelmaking in Germany.
The agreement also marks the first hybrid PPA in the German market for both participants. It gives Salzgitter Flachstahl operational control of a battery storage system for the first time, adding an energy-management capability alongside its role as a renewable electricity buyer.
The projects could also contribute to greater flexibility in Germany’s electricity system by combining variable solar generation with dispatchable battery capacity. For renewable developers, the arrangement demonstrates a route for pairing new solar assets with storage and securing long-term industrial demand, while energy-intensive manufacturers gain another mechanism for managing renewable power procurement.
Zelestra is a renewable energy developer involved in solar, wind, hybrid and energy storage projects. Salzgitter Flachstahl is the steelmaking subsidiary of Salzgitter AG and is implementing measures to transform its production system through the SALCOS framework.
