Orsted has announced plans to establish a MW-scale pilot energy storage system (ESS) in Taiwan.

The Danish energy firm has signed an agreement with several local partners to establish a consortium for energy storage research and the promotion of green energy systems in the region. It will build an ESS based on lithium-ion battery technology – the first of its kind in the country, Orsted said.

Martin Neubert, our Executive Vice President and CEO of Wind Power at Orsted, said: “I’m impressed with the Taiwanese government’s strong ambition for the green energy transition and its progressed and comprehensive regulatory framework. I believe Taiwan has potential to become a green energy hub in Asia like Denmark is in Europe.”

The demonstration facility will be located in Changhua county and will allow Taiwanese institutions to explore, test and assess how a battery-based energy storage system can support the grid, and how this may support the renewable energy build-out and the green transition in Taiwan.

Neubert added: “Our energy storage project in Changhua, also our first storage project in Asia, will collaborate with local partners to enhance grid efficiency and stability, as well as to set Taiwan at the forefront of the green energy industry.”

Orsted recently established a business unit specifically addressing the ESS market and has already installed storage pilot projects in the UK and Denmark. It says that the rapid evolution of storage technology and declining costs would enable greater deployment of the technology as a means for integrating renewable capacity into grid systems.

Orsted has four offshore wind projects under development in Changhua county with a combined capacity of 2.4 GW.