Renewable energy company Engie has signed a long-term agreement with  Spanish firm Ignis to access its installed battery energy storage system (BESS) capacity of 625 MWh over the next ten years. This agreement covers several BESS projects that will give the French company access to the flexibility these assets offer in the day-ahead electricity market.

This partnership is driving investment in the forthcoming construction of a portfolio of new BESS projects that will be spread across several Spanish autonomous communities, and which will top up the committed capacity. By harnessing these assets, Engie will be able to store energy during periods of peak renewable generation, and feed it into the grid when demand requires it. It will as a result be able to reduce its exposure to electricity market volatility, and contribute to the flexibility and stability of the grid.

Grid balancing
Once the construction phase for the new assets is complete, Ignis will remain responsible for operating the facilities, which are due to be commissioned in 2028, and it has also committed to stepping up its participation in the grid balancing services. Engie, for its part, is moving forward with its strategy of integrating flexibility into its business model, an increasingly crucial factor in grid resilience.

Jean Nicolas Lejeune, Managing Director of Engie’s Supply & Energy Management division for Iberia, explained, “This agreement consolidates Engie’s role as a leading player in providing market access for storage assets in Spain: by putting our energy management platform to work for the battery manufacturers, we unlock their flexibility for the market. And by combining that storage capacity with the renewable energy in our portfolio, we are furthering our ambition to offer customers a competitive, decarbonised supply available 24/7.”

Meanwhile, Santiago Bordiú, Head of Ignis Energy, said, “In addition to securing recurring revenue with a top-tier counterparty like Engie, this agreement enables us to continue maximising the value of these assets thanks to our expertise in grid balancing services. Ignis is thereby continuing to contribute to the flexibility of the Spanish grid, and to the electrification of our economy.”

^{Photo: Engie}