The 2.5MW battery is the size of three shipping containers and can store enough electricity to power 2,500 houses for two hours.
The firm has delivered the contract in partnership with demand response and storage firm KiWi Power and said the project is helping to reduce the need to keep fossil fuelled power stations in the region on standby.
It is also expected to cut the cost of running the electricity system, as well as improve its reliability and reduce its carbon footprint.
Revenue generated will be reinvested to support other innovative projects in the sector.
Jim Cardwell, Northern Powergrid’s Head of Trading and Innovation, said: “Batteries are set to transform the way we deliver and use electricity and will play a key role in achieving the government’s long term vision for a smart, flexible, low carbon energy system.”