On the legal nature of electricity supply contracts concluded by electricity companies and power stations generating electricity from renewable energy sources

Section 2 of the German Act for enhanced use of electricity from renewable energy sources (StEG) defines the obligation to contract but not the contractual obligations, i.e. the conditions of performance of the contract (supply and purchase of electricity and the legal obligations of contractors). The analysis here shows that characterising this mandatory contract required by the act as an agreement of purchase and sale more appropriately describes the legal nature of the contract and the intent of the legislator than other contracts for supply and purchase of electricity, as for instance those concluded by electric utilities and their customers. One specific aspect elaborated by the author is that the StEG does not constitute an obligation to supply on the part of the renewable energy generating power station, so that the power station operator is not obliged to ensure availability of the electricity at any time or in terms of supplies that can be called off by the purchasing utility, whereas the electric utility is obliged by section 2 of the StEG to purchase the contractual amounts from the generating station. (orig./CB)