Shell Energy Europe and Sunotec have signed a cross-border spread hedge agreement linked to a battery energy storage project exceeding 600MWh under development in Central Eastern Europe.
Sunotec said the five-year deal provides long-term price stability for the asset, which is expected to reach commercial operations in Q2 2026 and supports its financial viability.
Shell will diversify its regional power portfolio through the arrangement, which was facilitated by Enery Portfolio Optimisation, according to the partners.
Sunotec described the transaction as one of 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 said the partnership reflects their shared commitment to accelerating the energy transition through technology, infrastructure and financial innovation and will support regional market integration and large-scale renewable deployment.