Amazon has signed a battery energy storage tolling deal with Anza Power to support the development of the 50MW/200MWh Bairnsdale Battery Energy Storage System (BESS) in East Gippsland, Victoria, Australia.

The deal is Amazon’s first standalone battery storage tolling agreement in the APAC market. A tolling agreement is a contract in which a BESS asset is leased to a third party in exchange for a fixed, guaranteed periodic payment. The project will connect directly to the grid as a standalone asset to provide dedicated storage capacity independent of a renewable asset.

According to the companies, the agreement will help strengthen regional grid reliability and energy flexibility, enabling electricity to be stored and dispatched during periods of peak demand. Anza has not disclosed when it expects the project to become operational. “Signing Amazon’s first standalone battery storage tolling agreement is an important milestone for Anza Power and reflects the growing demand from major energy purchasers for dedicated storage solutions that support a reliable, low-carbon grid,” said Carlo Frigerio, CEO of Anza. “Bairnsdale demonstrates our ability to deliver flexible energy infrastructure that responds 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.”

The deal builds on an existing relationship between the two companies. In April , the two firms inked five solar-plus-battery storage Power Purchase Agreements (PPAs) with Anza, as part of nine deals it announced in Australia for approximately 430MW of power.

Anza was launched in January by global infrastructure investor I Squared Capital as part of its ISQ Growth Markets Infrastructure Fund II. Outside of the Amazon deal, Anza also signed a virtual PPA with Fonterra in June tied to a 42MW solar farm in New Zealand.

While the deal is Amazon’s first standalone battery storage offtake agreement, it has previously acquired battery assets to support its data center portfolio. For example, in January , the firm acquired a shovel-ready solar-plus-storage facility in Morrow County, Oregon.