SUNOTEC, the European leader in utility-scale solar and BESS solutions, has signed a cross-border spread hedge agreement with Shell Energy Europe B.V., advancing innovative financial mechanisms for battery energy storage systems in Central Eastern Europe. The five-year agreement was announced in Sofia in November 2025 and represents one of the first transactions of its kind in the region.

Project Details and Timeline

The agreement is linked to a 600+ megawatt-hour battery energy storage project owned by SUNOTEC, which is currently under development and expected to reach commercial operations date by Q2, 2026. The project is located in Bulgaria as part of SUNOTEC's co-location initiative in the country.

The agreement was facilitated by Enery Portfolio Optimisation and provides long-term price stability for the project, supporting its financial viability. For Shell, the deal helps to diversify its wider power portfolio in the region.

Strategic Significance

This transaction is among the first of its kind in Central Eastern Europe and helps to establish battery project development in the region. The agreement reflects both companies' shared commitment to accelerating the energy transition through cooperation in technology, infrastructure, and financial innovation.

Kaloyan Velichkov, Founder and CEO of SUNOTEC, stated: “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.”

Company Background

SUNOTEC is a leading European company in the development and construction of large-scale solar power plants, specializing in the end-to-end delivery of future-ready energy infrastructure. Through vertically integrated services, spanning engineering, manufacturing, construction, O&M, and BESS, SUNOTEC offers complete solar solutions designed for performance, reliability, and long-term impact.

Founded in 2012, the company has completed over 650 ground-mounted PV installations, with a total capacity exceeding 11 gigawatts across Europe. SUNOTEC is headquartered in Sofia, Bulgaria, with additional offices in Munich, Germany, and the United Kingdom, combining international expertise with local execution.

Market Impact

The transaction demonstrates how cross-border cooperation and forward-looking financial mechanisms can enhance regional energy market integration and facilitate the deployment of large-scale renewable energy assets. This pioneering agreement establishes a framework for future battery project development in Central Eastern Europe.

The deal comes as part of SUNOTEC's broader expansion in Bulgaria's renewable energy sector, where the company has been actively developing multiple battery energy storage system projects. The agreement with Shell represents a significant step in establishing long-term financial stability for large-scale energy storage infrastructure in the region.

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