Redt secured a £3.6m contract to develop storage for wind energy, while Moixa Technology received a £1.7m to install small battery-based storage units that store power for use during peak demand.
DECC minister Baroness Verma said that this investment will give these organisations the boost they need to develop energy storage designs, helping cut costs and bringing new technologies to market in this sector.
"The ability to store energy in this way will become increasingly important in the move towards a low carbon economy and I wish the winning organisations every success with their projects," Verma added.
Three other organisations, Kiwa Gastec, Sharp Laboratories, and EA Technology, also received a share of £900,000 to investigate the viability of a number of alternative energy storage technologies.
Moixa Technology CEO and founder Simon Daniel said that energy storage aims to help customers save money and reduce peak energy demand, by using low carbon, night, wind and solar resources.
"Government’s funding will ensure that we can continue our work to make energy storage cost-effective for wide deployment," Daniel added.
Redt operations head Gary Simmonds said that the timing of DECC’s energy storage competition is ideal for the company’s next stage of development – to design, build, and demonstrate larger scale, lower cost energy storage systems.
"The provision of such government support is clearly acknowledged as instrumental in allowing Redt to maintain its position at the forefront of this vital energy storage industry," Simmonds added.
