German-Bulgarian renewable energy company SUNOTEC has signed a five-year cross-border spread hedge agreement with Shell Energy Europe, aimed at ensuring price stability for its 600 MWh battery energy storage system currently under development in Bulgaria. The partnership represents an important milestone in enhancing financial predictability for large-scale energy storage projects in southeastern Europe.
The agreement is designed to mitigate electricity price fluctuations between interconnected European power markets, providing SUNOTEC’s project with greater financial stability as it advances toward commercial operation, expected in the second quarter of 2026. Although the financial terms have not been disclosed, the arrangement establishes a long-term framework that improves the project’s bankability and shields it from regional market volatility.
The transaction was facilitated by Enery Portfolio Optimization, an Austrian renewable energy services provider. This collaboration strengthens Shell Energy Europe’s footprint across central and eastern Europe and marks one of the first financial hedging deals in the region specifically aimed at accelerating battery energy storage deployment.
In parallel, SUNOTEC continues to expand its energy storage portfolio. In October, the company secured financing for six standalone battery projects and one hybrid solar-plus-storage facility, totaling 115 MW of solar power and 763 MWh of battery capacity. Additionally, Solaris Holding—a joint venture between SUNOTEC and Eurohold Bulgaria—has completed funding for four independent battery storage developments located in Pazardzhik 1 and 2, Ivaylovgrad, and Vratsa-grad, with a combined capacity of 107 MWh.
