A new $10 million battery project announced on Wednesday will store enough electricity to power every home in Armidale and Tamworth.
The lithium-ion battery was the first renewable project announced as part of the New England Renewable Energy Zone announced last month.
The 30 megawatt hour battery will be connected to Sapphire Wind Farm outside Glen Innes, the state's largest.
Member for Northern Tablelands Adam Marshall said said the battery would help keep the lights on during period of high demand.
"For the first time in our region's history we are on the cusp of becoming a net exporter of energy, but just as significant is the need to significantly increase our ability to store what we generate and release it when electricity demand is high," he said.
A state government grant awarded to CWP Renewables will subsidise the firm to build the large lithium-ion battery, which will capture excess energy generated from the Sapphire Wind Farm.
Mr Marshall said the new 8000 megawatt renewable energy zone, announced last month was needed to fill in the gaps caused by the planned closure of a number of coal-fired power stations in the Hunter.
"Without significant investment in new energy generation and energy storage, we run the risk of becoming reliant on other states for a power needs, which is less than ideal," he said.