Around 40% of the order will be used by AMS to develop 50MW storage for Southern California Edison, as part of a contract signed in November 2014, reported Bloomberg.

AMS CEO Susan Kennedy said: "AMS’ projects require intelligent, powerful and scalable energy storage solutions. Tesla’s technology gives us the edge we are looking for."

The contract with Edison International’s unit also includes designing the first fleet of Hybrid-Electric Buildings.

AMS will deploy Tesla-developed Powerpack energy storage systems in commercial and industrial buildings to offer utilities utilizing customer load with grid support.

A master agreement was also signed by AMS with Black & Veatch for engineering and construction services.

The company plans to install the first 10MW Hybrid-Electric building project in Irvine, California in 2016.

AMS also intends to enter into battery supply deals with additional technology providers.

California-based Tesla designs and manufactures electric vehicles and renewable energy storage systems.