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Base load meaning

Published by a LexisNexis Energy expert
What does Base load mean?
Base load (also baseload) describes, in legal and commercial practice, a flat, continuous quantity of electricity to be generated, delivered or taken in every settlement period over a defined term (typically 24 hours a day, seven days a week), intended to cover the system’s continuous minimum demand. It is a descriptive industry term rather than one generally defined in UK or Irish legislation or case law, and is usually set by contract wording and market rules (for example in power purchase agreements (PPAs), EFET or ISDA power documentation, and in standard forward products such as baseload month/quarter/year). Key legal features include a constant delivery profile, nominations and metering across all periods, pricing based on baseload indices, and allocation of imbalance and volume risk where actual generation or consumption differs from the flat profile. In regulatory and planning discourse, “baseload plant” refers to generators expected to run continuously, but this is not a statutory category. Usage and meaning are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, including the all-island Single Electricity Market.
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