Sunotec, Shell join forces to develop BESS in Europe

Sofia-based Sunotec signed an agreement with oil and gas major Shell on the development of battery energy storage systems in Central Eastern Europe.

Sunotec is developing projects for large solar and battery energy storage systems (BESS) in Europe while Shell is one of the leading oil and gas companies in the world.

Sunotec said it signed a cross-border agreement with Shell Energy Europe B.V. It marks a milestone in advancing innovative financial mechanisms for the development of battery energy storage systems in Central Eastern Europe, the Bulgaria-based company added.

The five-year agreement is linked to a 600 MW BESS project owned by Sunotec. The battery is under development and expected to enter commercial operation by Q2 2026, the update reads.

The deal helps Shell to diversify its wider power portfolio in the region

“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 Enery Portfolio Optimisation,” Sunotec said.

The transaction is among the first of its kind in Central Eastern Europe and it helps to establish battery project development in the region, according to the renewables developer.

Kaloyan Velichkov, Sunotec founder and CEO, stressed that agreements like the one with Shell highlight the company’s commitment to working with leading energy players who share its vision for a sustainable and forward-looking energy future.

Velichkov: The agreement demonstrates the power of collaboration in advancing flexibility and renewable-energy driven independence

“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,” he underlined.

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, in Kaloyan’s view.

Of note, Sunotec has been very active in the market over the last few months.

In October, the firm secured financing for a portfolio of seven projects in Bulgaria.

Three months prior, it signed an agreement with Sungrow on installing 2.4 GWh of BESS in Europe.