WEL Networks chief executive Garth Dibley says it is an exciting development.
"The battery will support the charging of electric vehicles, maximising the benefits of solar power and providing backup during grid emergencies."
Construction on the 35MW Battery Energy Storage System on Rotowaro Rd in Huntly will start in July and it's expected to be commissioned in December 2022.
The battery will store enough energy to meet the daily demands of over 2000 homes and be capable to provide reserves support for the North Island electricity grid.
Equipment supply contractors include Saft and Power Electronics NZ Ltd. Saft executive vice-president for energy storage solutions Hervé Amossé says the company is proud to pioneer the utility-scale energy storage system.
"This first network-scale battery system will contribute to the country's Net Zero ambition by 2030, allowing for more renewable energy to be installed and connected to the network and providing essential services to enhance grid stability and resilience."
WEL Networks is one of 29 electricity distribution entities in New Zealand.
Power Electronics say they have seen the trend to battery energy storage internationally, in particular in the US and Europe, where traditional energy generation from sources such as coal and nuclear are being replaced by solar and wind farms.