The new energy storage system will replace the existing system which was installed in 2012.

The project is expected to be complete by mid-August 2017, in time to support increased seasonal levels of wind power on the island.

The agreement calls for Younicos to replace earlier-generation lead-acid batteries and battery racks with advanced lithium-ion batteries. The implementation of li-on batteries will increase the operational lifetime of the storage resource.

Kodiak Electric Association (KEA) president/CEO Darron Scott said: "Our main goal has always been to bring more renewables to the island and greatly reduce the cost and environmental impacts of using diesel fuel.

"We realized early on that battery storage is the best solution to help us achieve these goals, and that Younicos is a company with the right technology and expertise — as well as a passion for clean and affordable energy."

Younicos chief commercial officer Jayesh Goyal said: "We're grateful to be chosen once more by KEA to upgrade their battery storage facility.

"Their decision to collaborate again on this project demonstrates a high level of trust in both our company and our storage control technology."

In 2007, KEA set a goal to produce 95 percent of Kodiak's energy from renewable sources by the year 2020, to reduce reliance on diesel fuel and lower the cost of generation to customers. Today the island has achieved that goal through a combination of hydroelectric and wind energy.

The use of greater amounts of wind energy to reach the renewables goal has been made possible by the intelligently controlled battery system engineered, commissioned, and soon to be upgraded, by Younicos.