Define: Station Service
In a contract, Station Service refers to the electricity a power generation or industrial project consumes internally to run its own operational equipment, such as lighting, motors, pumps, and control systems, rather than energy sold or exported to customers or the grid. It is typically deducted before calculating net output for billing or revenue purposes.
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What Station Service Means in a Contract
Station Service, sometimes called auxiliary load or house load, describes the portion of energy a generating facility or industrial site consumes to keep its own systems running. This includes powering lighting, motors, pumps, cooling equipment, and control systems that are necessary for the facility to operate safely and efficiently. In contract language, Station Service is distinguished from the energy or output that the project sells, exports, or delivers to a counterparty, because it never leaves the facility for commercial use.
Contracts that address Station Service usually do so to clarify how much energy is available for sale versus how much is consumed internally. This distinction matters because payment terms, metering obligations, and performance guarantees are often calculated on net output, meaning gross generation minus Station Service. Without a clear definition, disputes can arise over whether certain equipment, such as backup systems or administrative facilities, should be included in the Station Service calculation.
The concept is common in power generation, but it also appears in broader industrial or infrastructure contracts where a facility's internal energy use affects billing, efficiency metrics, or regulatory reporting. An Relevant Circumstances
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