Salzgitter Signs Solar Power PPA with Battery Storage

Salzgitter Flachstahl and the energy company Zelestra have concluded what they describe as Germany’s largest hybrid solar-plus-storage power purchase agreement. The agreement covers two projects with a total solar capacity of 147 MW, combined with battery storage systems providing 79 MW of power output and 237 MWh of storage capacity.

With the power purchase agreement, Salzgitter aims to expand its procurement of green electricity and support the production of green steel. At the same time, the agreement is intended to help increase grid flexibility.

Zelestra to Build Plants in Brandenburg and Thuringia

Under the agreement, Zelestra will build and operate two hybrid plants with directly connected battery storage systems in Brandenburg and Thuringia. Salzgitter Flachstahl will purchase solar power from the two plants with a total capacity of 147 MW, corresponding to around 158 GWh per year.

Salzgitter Flachstahl will also control the operation of the battery storage systems. By using storage capacity, the company aims to better align electricity supply with its own electricity demand. According to the company, the battery storage systems will be charged exclusively with surplus solar power from the plants.

Salzgitter to Operate a Battery Storage System for the First Time

According to Salzgitter, the agreement is the first hybrid PPA in Germany. The steel producer also states that it will become the operator of a battery storage system for the first time.

For Salzgitter Flachstahl, hybrid PPAs are an important element in meeting the growing demand for green electricity for the transformation of steel production over the long term and on competitive terms.