Grenergy signs 12 year tolling deal for Spanish hybrid project with 680 MWh BESS

Grenergy has signed a 12-year tolling agreement for a Spanish hybrid project combining a 200 MW solar farm and a 680 MWh battery energy storage system (BESS), marking what is likely the most significant deal of its kind in Europe for a co-located battery energy storage system.

The contract, covering the Escuderos hybrid project in Castilla-La Mancha, has been agreed with an unnamed international utility rated investment grade by Moody’s and Standard & Poor’s. It will run for 12 years and is set to take effect in July 2028.

Construction of the BESS is scheduled to begin in the second half of this year, with commissioning targeted for 2027. Under the tolling agreement, Grenergy will retain responsibility for operating the batteries and managing trading activities.

This marks Grenergy’s second tolling deal in Spain, following a 10-year agreement signed in February for its 150 MW/600 MWh standalone project in Oviedo – currently the largest of its kind in the country. That deal was also struck with an unnamed investment-grade international utility.

In terms of duration, Grenergy’s agreements rank among the most significant tolling deals in Europe to date. The main benchmark remains the 15-year contract between Drax Group and Zenobē for a 200 MW/800 MWh project at Coalburn in Scotland, which features a fixed fee structure without inflation indexation.

The new tolling agreement complements a daytime power purchase agreement signed with Galp in 2020, also with a 12-year term, covering the solar output of the Escuderos project.

With Escuderos, Grenergy aims to replicate in Spain the solar plus storage hybridization model developed in Chile through its Oasis de Atacama and Oasis Central platforms. Oasis de Atacama currently totals 2 GW of solar capacity and 11 GWh of storage, with completion expected in 2027 and an investment of €2 billion. Oasis Central is planned to deliver 1.1 GW of solar and 4 GWh of storage, with an estimated investment of €900 million.

“Escuderos marks the beginning of a new stage for Grenergy in Spain. It is our first major hybrid project in the country and more will follow. We see enormous potential in the Spanish market to continue developing a hybrid portfolio, building on the experience and track record we have already established in Chile with the Oasis platforms,” said David Ruiz de Andrés, CEO of Grenergy.

In parallel, Grenergy continues to advance Greenbox, its standalone battery platform in Europe, with a total pipeline exceeding 30 GWh. The company is progressing projects across its core markets: Poland (5 GWh), Romania (7 GWh), Germany (3 GWh), Italy (5.8 GWh), Spain (6 GWh) and the United Kingdom (4 GWh).