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Centrica has installed a 3MW lithium-ion battery storage plant at the Gateshead District Energy Centre in Tyne and Wear.
The battery scheme is made up of six units with a minimum response time of 140 milliseconds capable of storing enough power to meet the needs of 3,000 homes for one hour, the company said.
Once commissioned later this year, Centrica will manage the project under a 10-year contract for providing various flexibility services for National Grid.
The system will also be used to help meet peaks in local demand, providing electricity through a private wire to council-owned and other local buildings.
The Gateshead District Energy Centre consists of a pair of 2MW combined heat and power units.
Centrica Distributed Energy and Power director Alan Barlow said: “The Gateshead Energy Centre is a ground-breaking scheme and an impressive demonstration of how distributed energy solutions can generate cost savings, strengthen resilience, by bringing together battery storage and other energy technologies.”