E.ON UK is developing a "giant battery" that can be used to store renewable energy when it isn't needed by customers.
The energy supplier has been building a prototype of the storage device and expects it to hold around 10 million AA batteries-worth of power generated from wind farms and solar panels.
It is then hoped the surplus energy will be available at times when demand for electricity is at a high.
Discussing the development, E.ON's managing director of energy wholesale and technology Bob Taylor said: "It's still very early days but we believe energy storage is a key which will help us unlock a lower carbon tomorrow and radically change the way we think about energy."
E.ON UK's announcement about renewable energy storage comes after it revealed plans to invest £40 million in a research fund for new energy technology.
The company has also recently been involved in the development of environmentally friendly heating options for a community in Kent.
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