A large-scale battery energy storage plant in China is set to demonstrate a way in which the country could manage the growing levels of renewable energy on its grid.

State Grid Corporation of China and BYD Co., a Chinese green-tech firm, have announced the completion of a 36 MWh lithium-ion battery plant in Hebei province that will store the energy produced by nearby wind and solar power plants.

The project is also integrated with smart grid technologies and is one of the largest energy storage projects of its kind in the world. The plant will help State Grid to manage the variable power output from renewable energy facilities.

The $500 million plant uses BYD’s iron-phosphate battery technology, which has a service life of over 20 years. It will store energy generated by 40 MW of solar capacity and a 100 MW wind farm, releasing it during periods of high electricity demand.

The system is designed to discharge the stored energy over a period of 4-6 hours.

According to reports, State Grid Corporation wants to expand the project to 110 MWh of storage capacity coupled to 500 MW of wind capacity and 100 MW of solar.

China’s plans to boost its installed renewable power capacity mean that it is a potentially huge market for energy storage technologies.