Powercorp has put its technology to work in Portugal's Azores Islands, which are powered by diesel generators, a hydro plant and wind turbines.
In wind/diesel systems, natural fluctuations in wind energy have to be offset by diesel generators.
Powerstore says its technology can use a flywheel to store excess energy from the intermittent wind turbines output.
During times of excess wind, the energy is smoothly absorbed and can be delivered when it is needed, Powercorp marketing manager Will Galton told Environmental Management News.
In addition, when the Powerstore detects insufficient wind, it uses its stored energy, retaining enough in reserve to start the diesel generators if necessary.
"The installation of Powercorp's new technology will enable the local utility Electricidade dos Acores to maximise the wind penetration into the power station on the island," Galton said.
He told EMN the fully automated Powerstore would result in the company reducing its diesel use at the Flores Island power station by about one million litres.
At a second installation on the neighbouring island of Graciosa, Powercorp will also provide a newly developed control system that automatically controls and monitors all diesel generator sets, wind turbines and the PowerStore.
The fully automated system will be operated remotely from Darwin.
Since the commission of PowerStore in October, fewer diesel generators have been required during periods of high wind, reducing green house gas emissions and diesel costs, the company said.
Powercorp is also expanding its applications into the mining sector. A Powerstore unit is set to be installed early next year at a Western Australian mine site.
The power demand for the winder at the underground operation fluctuates considerably and the installation of just one 1MW PowerStore system will reduce total demand shift from 8.5MW to 6.5MW, according to Powercorp.
This will allow the independent power provider to reduce the amount of diesel-based spinning reserve by at least one 1MW generator, saving about $1 million per year, the company said.