Deloitte analyzes battery contracts and hybrid PPA structures

During an AleaSoft webinar, Deloitte experts examined how new contractual structures for energy storage are evolving. These include tolling agreements, revenue share contracts, and hybrid Power Purchase Agreements (PPAs) designed to manage market risk and facilitate financing.

In a tolling agreement, a battery owner transfers 100% of management to an optimizer in exchange for a fixed price. This eliminates market risk, allowing banks to calculate debt levels based on contracted income. A case study involving a 100 MW battery associated with a 140 MWp solar plant showed that a tolling arrangement could reduce equity requirements from 142 million to 86 million euros.

Revenue share models distribute battery-generated income between parties, often including a guaranteed minimum floor to protect owners while allowing participation in additional profits. Other emerging structures include day-ahead swaps linked to market prices and ‘storage as a service’ models. Experts noted that reliable long-term price forecasts are essential for valuing these contracts and justifying assumptions to auditors.