Shell and SUNOTEC sign landmark cross-border spread hedge agreement

The five-year agreement is linked to a 600+ MWh BESS project owned by SUNOTEC, which is under development and expected to reach commercial operations date by 2Q26. The agreement 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. The agreement was facilitated by Energy Portfolio Optimisation.

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

Kaloyan Velichkov, Founder and CEO of SUNOTEC, added: “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 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 transaction demonstrates how cross-border co-operation and forward-looking financial mechanisms can enhance regional energy market integration and facilitate the deployment of large scale renewable energy assets.

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's autumn 2025 issue

Explore the latest insights into the renewable energy sector in the autumn issue of Energy Global, out now! This edition features a regional report on the Asia Pacific from Aurora Energy Research, mapping out why the wholesale price cap is detrimental to the energy transition in India. The issue then delves into articles covering crucial topics such as digitalisation in renewables, inspection & maintenance, developments in floating offshore wind, coatings, solar optimisation and more. Contributors include Flotation Energy, DNV, Sarens, Neuman & Esser, Teknos, and more, so this issue is not one to miss!

Read the article online at: https://www.energyglobal.com/energy-storage/04112025/shell-and-sunotec-sign-landmark-cross-border-spread-hedge-agreement/