It will store surplus electricity generated from green sources like wind turbines and feed it back into the grid when demand is high.
The Buxton Battery Energy Storage System (BESS) will have the capacity to store enough energy to power 90,000 homes for two hours.
Atlantic Green is building the facility at Waterswallows and it is expected to be fully functional by May.
Managing director Nick Bradford said if surplus electricity was not stored then renewable sources might need to be turned off or have their output reduced.
He said: “You then have to look at other sources of generation in the UK which might not be so green.
“The Buxton BESS Project will contribute to improving grid stability and pave the way for a greener and more sustainable energy future.
“We take pride in contributing to Derbyshire’s efforts in tackling climate challenges and supporting the UK in reaching its net-zero targets, ensuring energy security for the future.”
The BESS project will have the capacity to store enough energy to power 90,000 homes for two hours
As more power comes from wind and solar, the need for these batteries and similar storage sites is expected to grow.
Atlantic Green project manager Sam Currie said: “The battery energy storage market in the UK and globally is growing.
“We’ve also got sites cropping up where you have got a core location. So you will have wind farms or solar farms for example and there will be a battery farm put alongside them to store the green energy that is produced.”
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