COPENHAGEN (Reuters) - Danish state-controlled utility and wind power developer DONG Energy (DENERG.CO) will install a battery system at its Burbo Bank Offshore wind farm off the coast of Britain to help deliver stable supplies to the grid, it said on Wednesday.
It will be the first time an offshore wind farm is integrated with batteries designed to maintain a stable output frequency, DONG said in a statement.
"With eight existing offshore wind farms in the UKand another four under construction, we expect to leverage further technology improvements," DONG Senior Vice President Ole Kjems Sorensen said.
With renewable electricity production on the rise, so is the need for technology to help grid operators better balance fluctuating wind and solar electricity supplies with demand.
Danish wind turbine maker Vestas (VWS.CO) said in March it was looking to invest in energy storage start-ups, and in February Tesla (TSLA.O) began mass production of lithium-ion battery cells at a California plant.
"Offshore wind is a young industry that is searching for all kinds of technological advances to improve its product and competitive position towards fossil fuels for energy production," Sydbank analyst Morten Imsgard said.
Shares in Dong Energy were up 1.45 percent at 300.70 crowns (£35.1) by 1028 GMT on Wednesday, when the Stoxx Europe 600 utilities sector index was up 0.9 percent.
Reporting by Julie Astrid Thomsen; Editing by Terje Solsvik, Greg Mahlich