Amazon signs tolling agreement for Victorian battery storage site

Amazon Australia has signed a battery storage tolling agreement for the Bairnsdale battery energy storage system (BESS) in East Gippsland, Victoria, with Anza Power, marking the first arrangement of its kind in Australia for a non-energy business.

Unlike a co-located battery, the Bairnsdale BESS will connect directly to the electricity grid as a standalone asset, providing dedicated storage capacity independent of a solar or wind farm.

The site will deliver 50 megawatts (MW) of alternate current capacity and 200 MW hour (MWh) of energy storage to the National Electricity Market.

The agreement will help strengthen regional grid reliability and energy flexibility, enabling electricity to be stored and dispatched during periods of peak demand, the parties said.

In doing so, it will support greater penetration of renewables across the grid while enhancing system stability.

Notably, Anza is backed by I Squared Capital and benefits from its broader Asia Pacific energy and infrastructure platform.

Commenting, Anza chief executive Carlo Frigerio said the agreement marks an important milestone for the company.

"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," Frigerio said.

Bairnsdale is part of Anza's diversified development strategy across Australia and New Zealand, spanning standalone battery storage, solar-plus-storage and other integrated energy solutions.

This agreement builds on Anza's existing relationship with Amazon, including nine additional renewable energy deals across New South Wales and Victoria.