Battery Tolling Agreements Multiply in Italy

Tolling agreements — under which a buyer, typically also party to a power purchase agreement (PPA), commits to paying a fixed fee to the owner of a battery energy storage system — are becoming more common in Italy. This type of contract de-risks investment in storage assets and makes it easier to finance them. Payments under tolling agreements are comparable in size to state subsidies. For buyers, access to storage capacity helps optimize the value of the renewable power acquired under a PPA.