"This is an important step in the journey towards embedding distributed storage as an important part of a renewable energy powered grid," said Simon Corbell, Australian minister for the environment and climate change.
"As the Australian Capital Territory (ACT) transitions to renewable energy, it is important for residents to understand how new technologies will perform in their house and stand the test of time."
The new facility, which will be operated in cooperation with local consultancy ITP Renewables, will test eight different lithium-ion battery technologies over the next three years, in a setting that will simulate the countrys natural environment.
"The ACT is an ideal launching pad for local, domestic and international businesses seeking to get a head start in this emerging industry," Corbell said.
"The investment in energy storage will produce substantial cost savings associated with meeting peak demand and drive the development of new commercial opportunities and jobs in the region."