News Synopsis
SNAPSHOT
Agreement – Long-term Battery Storage Flexibility Purchase Agreement
Companies – ENGIE and IGNIS
Location – Multiple regions across Spain
Storage Capacity Covered – 625 MWh of standalone Battery Energy Storage Systems (BESS)
Agreement Duration – 10 years
Operations Begin – Scheduled for 2028
Objective – To provide long-term battery storage flexibility, optimize participation in Spain's electricity markets, and support renewable energy integration and grid stability.
IGNIS, a vertically integrated energy company, and ENGIE have signed a long-term Battery Storage Flexibility Purchase Agreement for standalone BESS projects across several regions of Spain. The agreement covers 625 MWh of installed storage capacity and supports the expansion of large-scale battery storage in Spain’s renewable energy sector.
The agreement will remain in force for ten years, giving ENGIE access to the operational flexibility provided by the battery assets in Spain's day-ahead electricity market. At the same time, IGNIS will secure long-term revenues generated through battery operations while retaining responsibility for operating the facilities and optimizing their participation in the electricity system's balancing services.
The battery storage projects are scheduled to enter commercial operation in 2028. Once operational, the systems will be storing surplus electricity generated during periods of high renewable energy production and discharge that energy when electricity demand increases or renewable output declines. This approach helps in reducing electricity market volatility while improving the flexibility, stability and reliability of Spain's power system.
The agreement strengthens ENGIE's strategy of expanding technology-driven battery storage solutions and also increasing its presence in Spain's rapidly developing flexibility market. By combining battery storage with its renewable energy portfolio, ENGIE aims to improve the availability of low-carbon electricity and support continuous energy supply for customers.
For IGNIS, the agreement further reinforces its growing position in Spain's energy storage market. The company became the first independent operator in Spain to manage a standalone battery in the electricity market and continues to expand its storage activities through long-term commercial partnerships. Under this agreement, IGNIS will maximize the operational value of the battery assets by managing their participation in balancing markets while securing predictable revenues.
According to Santiago Bordiú, Head of IGNIS Energy, the agreement provides recurring revenues through collaboration with a major international energy company while enabling IGNIS to maximize asset value through its expertise in balancing electricity systems. He added that the company remains committed to improving flexibility within Spain's electricity network and supporting broader electrification.
Jean Nicolas Lejeune, Managing Director of ENGIE's Supply & Energy Management division for Iberia, said the agreement strengthens ENGIE's position in Spain's battery storage market. He noted that integrating battery storage with the company's renewable energy portfolio supports its objective of delivering competitive, decarbonized electricity while making flexible energy available around the clock.