With the ESS system, CSPG will be able to meet the supply and demand over the south China grid.

The ESS system is designed to feed power to the grid in case consumption exceeds production.

Highpower president and CEO George Pan said: "ESS systems have far reaching applications, not just in integrated grid technologies or stand-alone systems, and there is a real possibility this technology will be entering the residential market.

"This is a promising market, as policies and incentives are making it more economically feasible to sell battery systems to businesses, utilities, and residences.

The company expects to deliver the batteries and battery management system (BMS) by the end of this month.

Said to be one of the major utility suppliers, CSPG constructs and operates power networks in southern China.

Highpower International provides Nickel-Metal Hydride (Ni-MH) and lithium-based rechargeable batteries for various applications, including electric buses, bikes, energy storage systems, power tools, medical equipment, digital and electronic devices.