Eon has started installation work on the 10MW battery facility at its 30MW biomass combined heat and power plant at Blackburn Meadows near Sheffield.
The lithium-ion battery that makes up the storage project is the size of four shipping containers, Eon said.
The project was one of eight to be awarded a contract by UK transmission system operator National Grid, which will use the batteries to help balance supply and demand.
Italian outfit Nidec ASI has been contracted by Eon to supply power conversion technology to the project.
The storage project is expected to be fully operational by late 2017.
Eon director of business heat and power solutions David Topping said: “This is a milestone for Eon in the new energy world and an important recognition of the enormous potential for battery solutions in the UK.”
Image: work underway at Blackburn Meadows battery plant (Eon)
Keep on top of breaking news with reNEWS Daily Alerts, straight to your inbox every morning at no charge. SIGN UP HERE