This type of contract has mainly developed due to the need for fuel suppliers to assign risks in innovative ways, while preserving the project`s ability to raise capital on a non-price basis. The basic contract, which characterizes a toll structure, is called a toll agreement. Under this agreement, on the one hand, a large customer called a toll booth provides fuel as a “good free emission” to the project company`s plant and gives that company mandates for converting the amount of fuel delivered into energy. In return for the services offered, the SPV is entitled to a toll. Figure 3.11 shows how a standard toll agreement works. A toll contract is a lease agreement for a power plant to its owners. These agreements give the tenant the opportunity to convert a physical product (fuel) into another commodity (electricity). This chapter explains how to determine the economic value of a power plant. In August 2014, Duke Energy Corporation (Duke) and Calpine Corporation (Calpine), a competing wholesale electricity seller in Florida, agreed to Duke`s purchase of the Osprey Energy Center (Osprey) in Florida. The structure of the proposed transaction included a toll agreement that entrusted Duke with responsibility for determining the energy to be produced at BeiOsprey and for purchasing the fuel needed to produce that energy. Essentially, the toll agreement allowed Duke to take operational control of the Osprey plant and limited Calpine`s role to “the mechanical operation of the Osprey facility in accordance with Duke`s instructions.”  A Fuel Supply Agreement (FSA) to ensure fuel supply and reduce the risk of supply This uncertainty is resolved through a mechanism known as a dispute agreement between the independent manufacturer and the REC.
In this agreement, the parties created a guarantee fund on the basis of a strike price. If the price paid by the checkerboard at the pool exceeds the strike price, the producer reimburses the rect; if this price falls below the exercise price, the REC pays the difference to the manufacturer. In reality, the differential contract is an exact replica of the PPP contract in the U.S. model.3 Other categories of projects without equity agreements are normally 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. flow agreements used in pipeline projects, with the shipper pledging to provide a minimum amount of oil or gas sufficient to ensure a predetermined revenue stream to the project company; (In the case of this delivery, the sender would still be required to make a payment corresponding to the project company, sometimes referred to as the payment of a default); and offtake agreements are essentially the legal instruments that generate the project`s cash flow and a reliable expectation is created for generating these cash flows to benefit the project`s ex ante banking capacity.