Renewable energy company Zelestra and German steel manufacturer Salzgitter Flachstahl have signed what the companies claim is Germany’s largest hybrid solar-plus-storage power purchase agreement (PPA).
The long-term agreement covers two new hybrid plants totaling 147 MW of solar, combined with 79 MW / 237 MWh of battery energy storage systems (BESS). Zelestra will build, own and operate the Brandenburg and Thuringia projects.
Salzgitter Flachstahl will purchase 158 GWh of solar generation from both sites annually and directly control the dispatch of the co-located batteries to maximize the use of solar power in its low-carbon steel production.
Both battery systems will be charged exclusively from surplus solar power. Salzgitter Flachstahl highlighted that hybrid PPAs are becoming a key procurement tool under its SALCOS decarbonization program, while for Zelestra, it showcases the company’s expansion in Germany, with a pipeline of more than 2 GW of solar, hybrid, wind and battery storage projects.
“This is an innovative agreement between two forward-thinking companies with a shared focus on decarbonization. As the largest hybrid deal in Germany to date, it shows real ambition from both parties, and we expect this segment of the market to grow considerably in the months ahead,” said Mathias Künicke, CEO of Zelestra in Germany.
Marco Hauer, head of group energy procurement at Salzgitter Flachstahl GmbH, said the deal supports Salzgitter’s decarbonization plans, adding: “The combination of solar energy and battery storage opens up the opportunity for us to procure renewable energy for our industrial processes in line with demand and at competitive conditions. The agreement supports our ambitious decarbonization of steel production and helps to secure the competitiveness of the Salzgitter site.”
In August 2026, Zelestra signed a tolling agreement with Centrica Energy for a 99 MW / 297 MWh BESS in Hilgermissen, Lower Saxony, with construction slated for 2027.
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