Mutual Energy has started a feasibility study for a pumped hydro-energy storage (PHES) reservoir near Carrickfergus, by Belfast Lough in Northern Ireland.
Water would be pumped from Belfast Lough when there is plentiful renewable energy and then released to power a turbine when renewable generation is low.
The feasibility study is expected to take two years. The study will be used to inform the Northern Ireland Executive and the Utility Regulator.
Mutual Energy currently operates the Moyle Interconnector, which links the electricity systems of Northern Ireland and Scotland, and the Scotland to Northern Ireland natural gas transmission pipeline, which imports almost all of the gas used in Northern Ireland.