United States’ energy storage company A123 Systems has sealed a deal with Britain’s electricity distribution network operator Northern Powergrid to supply six grid battery systems (GBS).

The battery systems will be used for managing fluctuations in voltage on Powergrid’s network which delivers electricity to more than 3.8 million customers in the U.K.

Analysts say the deal with U.K.’s power grid operator is a boost to A123, whose shares dropped dramatically last week after its biggest customer Fisker stopped the construction of a major new facility.

The power project is said to be part of the customer-led network revolution (CLNR), the UK’s largest smart grid project funded by the government.

“One aspect of this multifaceted project is to determine how the use of storage technology may reduce peak loading on our network and thereby offset the need for network reinforcement," said Jim Cardwell, head of regulation and strategy at Northern Powergrid.

Analysts say U.K. requires more and more energy storage technologies to meet its climate change goals.

"Grid operators around the world are faced with a variety of technical hurdles when trying to add significant renewable capacity. In the U.K., distribution networks often have limitations that make adding high concentrations of wind and solar difficult," said Robert Johnson, vice president of the Energy Solutions Group at A123.

The U.S. company stated that its energy storage technology is designed to help power grid operators overcome these challenges by efficiently managing the voltage levels of the power network.

According to A123’s press release, the six GBSs that it is will supply to Northern Powergrid include a 2.5MW system, two 100kW systems and three 50kW systems. Each will be designed to maintain these power capabilities for up to two hours, adding flexibility to the distribution network and helping to provide consistent delivery of reliable power to customers.

In December, 2011, A123 Systems had struck similar deal with Maui Electric Company (MECO) agreeing to supply its grid battery system (GBS) to support the Maui smart grid project.