Power Purchase Agreement Vs Tolling Agreement

The other categories of non-take-take projects are usually found in public infrastructure. In such cases, payments must take the form of tolls or fees for infrastructure users (which must be made available to the general public). Otherwise, what will be found in the acquisition agreement is incorporated into the provisions of the concession agreement, either in the form of payments or in the form of subsidies promised by the aid authority. The practice of project financing has identified the following categories of equity agreements: in particular, the PPP contract provides that the project company provides a certain amount of electricity per day; the buyer, on the other hand, is required to make a minimum purchase and to pay a fee, part of which is fixed and partly variable. The energy storage toll agreement is structured as a standard toll contract for a gas production project and supplies the buyer (usually a distribution company) with capacity, energy and other products generated by a standalone battery project. As a « seller » under the agreement, the project sponsor is responsible for the development, ownership, operation and maintenance of the battery project and retains technical control over the operation of the battery. As a « buyer » in accordance with the agreement, the purchaser normally exercises full power to recharge and discharge the battery, subject to restrictions on battery use and other agreed shipping parameters. In addition, the Offtaker generally pays and supplies all the network charge energy to the battery and acts as a « planning coordinator » or « operator » for the battery in managing its planning arrangements. The buyer pays the project sponsor a fixed capacity fee (usually monthly) for his right to use the battery capacity and often a variable operating or energy charge for dispatches that are charged by the buyer. The capacity charge may be reduced for reductions in project capacity, availability or efficiency. For a more detailed analysis of AAE issues of this type, see ifC`s guide to electricity purchase contracts (1996) – see Appendix 2 (page 160) of the World Bank concession toolkit (pdf).

Long-term project of an electricity supply contract (AAE) of the Electricity Regulatory Commission (CERC) (for projects for which location and fuel are indicated) (pdf) – Draft electricity supply contract developed by CERC for the Indian PPI market – for long-term agreements (more than 7 years) for the construction of power plants in which the site is not indicated.