The project represents one of the nation's first demonstrations of energy storage at a utility-scale wind farm. Funding will come from the March economic stimulus law.

Plans call for the batteries to have 20 megawatts of storage capacity. The Electric Power Research Institute , a non-profit research company, will provide advisory services to Duke Energy throughout development of the project.

Duke Energy will also work with the Energy Reliability Council of Texas (ERCOT) to understand the project's implications and establish requirements for its implementation.

ERCOT operates the Texas electric grid and manages the deregulated market for 75 percent of the state.

Duke Energy and DOE must negotiate the terms and conditions of the grant before any funds are released.

The planned will store excess wind energy and discharge it whenever demand for electricity is highest, not just when wind turbine blades are turning.

Meeting demand for energy with stored renewable power instead of electricity from conventional generation sites that burn coal or natural gas may also help reduce greenhouse gas emissions.

"Through this project, Duke Energy intends to show that renewables can play an even bigger role in our country's energy future," says Wouter van Kempen, president of Duke Energy Generation Services, a Duke Energy unit that owns and develops renewable energy assets.

The 95 wind turbines in operation at the Notrees site can generate 151MW of clean, renewable electricity. In April 2009, Walmart began purchasing energy directly from the Notrees project to power up to 15% of its stores and facilities in Texas.