Shell Energy Europe and Sunotec have signed a cross-border spread hedge agreement linked to a battery energy storage project exceeding 600 megawatt-hours (MWh) under development in Central Eastern Europe, the companies said on Tuesday.
The five-year deal is designed to provide long-term price stability for the asset, which is expected to reach commercial operations in the second quarter of 2026, Sunotec said. The agreement also supports the financial viability of the project while enabling Shell to diversify its regional power portfolio. The arrangement was facilitated by Energy Portfolio Optimisation.
Sunotec described the transaction as among the first of its kind in Central Eastern Europe and said it advances battery project development in the region.
Kaloyan Velichkov, founder and chief executive of Sunotec, said: “Agreements like the one with Shell highlight SUNOTEC’s commitment to working with leading energy players who share our vision for a sustainable and forward-looking energy future. This pioneering agreement demonstrates the power of collaboration in advancing flexibility and renewable-energy driven independence. By uniting technical expertise with financial ingenuity, we are helping to build a more resilient and integrated energy system.”
The companies added that the partnership reflects their shared commitment to accelerating the energy transition through technology, infrastructure and financial innovation, supporting regional market integration and the deployment of large-scale renewable energy projects.
