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. Over-the-counter contracts for front-of-meter battery storage projects generally have one of three forms: the energy storage toll contract, the capacity sales contract or the hybrid electricity purchase contract (AAE). The Energy Storage Pricing Agreement and the Capacity Sales Contract are similarly structured and generally regulate the sale of products and services from a standalone battery storage project. On the other hand, the hybrid PPP applies to a renewable energy or conventional energy project (for example. B, solar, wind, gas or other), integrated (and typically located jointly) in a battery storage project. The most common energy storage systems for ESaAS are lithium-ion batteries or flow batteries because they are compact, have non-invasive facilities, high yields and rapid reaction times, but other storage media such as compressed air, inertia wheels or pumping water can be used.   The batteries are sized in size according to the needs of the installation and combined with an inverter to convert power into alternating current to alternating current, in order to be connected directly to the power supply of the installation.
A project sponsor can use one of several contractual approaches to reduce legal risk modification, and the most effective method depends on the project sponsor`s risk tolerance and the long-term requirements of the product and the buyer`s flexibility. One possibility is for the project sponsor to agree to meet certain contractual requirements, within the limit of a pre-agreed compliance spending limit, for each year of contract or for the duration of delivery. The project sponsor may also agree to meet all relevant obligations as long as there is no need to modify the battery storage project. Finally, a sponsor may contain a series of “operating parameters” of the battery system and simply agree to provide all products that comply with these parameters.