Amazon inks its first ever standalone battery tolling agreement – with a project in Australia

Global web services giant Amazon has signed its first ever standalone battery “tolling” agreement, globally, and it has achieved this milestone through a deal with a battery project in East Gippsland, Victoria, Australia.

The landmark tolling agreement – a first in Australia to be contracted by a non-energy business – signs Amazon up to lease operational and financial control of the 50 megawatt (MW), four-hour Bairnsdale battery, determining when it charges and discharges, in exchange for a fixed fee to the owner.

The deal was announced on Wednesday by Amazon and the owner of the Bairnsdale BESS, Anza Power, which was only established in January, backed by independent global infrastructure investor I Squared Capital and a $US300 million equity commitment from the ISQ Growth Markets Infrastructure Fund II.

The deal with Amazon is Anza Power’s seventh energy agreement it has signed since launching earlier this year – and while its Amazon’s first standalone battery storage tolling agreement, globally, Amazon has invested in seven battery projects in Victoria, to date.

Since 2020, Amazon has invested an estimated $A2.8 billion in carbon-free energy projects across Australia, including a 430 MW, $A2.8 billion buy-up in April of this year, with eight of the nine deals incorporating battery storage – and three of those projects being utility-scale solar-battery hybrids.

In a blog post announcing the new tolling agreement, Amazon points to the estimated 7.2 terawatt-hours of surplus wind and solar energy generated in Australia in 2025.

“That’s approximately enough electricity to power every home in New South Wales through the evening peak for an entire year, precisely when households need it most and when batteries would discharge,” it says.

In Anza’s own statement, CEO Carlo Frigiero described the new deal with Amazon as an important milestone.

“Signing Amazon’s first standalone battery storage tolling agreement … reflects the growing demand from major energy purchasers for dedicated storage solutions that support a reliable, low-carbon grid,” Frigiero said.

“Bairnsdale demonstrates our ability to deliver flexible energy infrastructure that respond to the evolving needs of both the market and our customers. We look forward to building on the momentum we have established since launching Anza earlier this year.”