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Storage & Hybrid Definitions

Updated over 6 months ago

European Term

American Term

Definition

Stand-alone battery/BESS

Stand-alone battery/BESS

A battery energy storage system (BESS) that operates independently of generation assets. It provides grid services such as frequency regulation, arbitrage, and peak shaving without being directly paired with renewable energy sources. Stand-alone batteries help balance supply and demand, enhancing grid reliability.

State of Charge (SoC)

Battery Charge Level

The percentage of energy stored in a battery at a given moment. SoC fluctuates based on market signals in arbitrage-based battery storage systems, where power is stored when prices are low and sold when prices are high.

Storage Duration

Discharge Duration

The number of hours a battery storage system can discharge at full power before being depleted. A key metric in energy storage planning for grid stability.

Storage Power Ratio

Storage Power Ratio

The ratio of storage capacity (MW) to the power generation capacity (MW) of the plant. This ratio helps determine the flexibility and energy dispatch potential of a storage system.

Swaps (Storage Offtake Contract)

Swaps (Storage Offtake Contract)

A financial agreement where energy storage operators lock in future revenue by swapping floating electricity market prices for fixed payments. This mitigates exposure to market volatility and provides financial predictability for storage operators and buyers.

Tolling Agreement (BESS Tolling Agreement)

Tolling Agreement (BESS Tolling Agreement)

A contractual arrangement where a buyer (often a utility, trader, or corporate entity) pays a fixed fee to use a battery energy storage system (BESS) without owning the asset. The buyer provides the electricity for charging, retains the rights to discharge and sell stored energy, and benefits from revenue streams such as arbitrage and ancillary services. This structure allows storage asset owners to secure stable income while enabling buyers to optimize energy trading strategies without investing in battery infrastructure.

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