The Kerry battery unit is located at the site of the company’s first Irish onshore wind project at Kilathmoy on the Limerick/Kerry border in the south-west of part of the country.
The wind farm will consist of seven turbines with a total capacity of 23MW and cost €30 million (£26m) to develop.
The hybrid battery and wind project is expected to be fully operational in early 2020.
Kevin O’Donovan, Statkraft Ireland Managing Director said: “This is a landmark day for the energy market in this country and represents a very exciting milestone for power storage here. Energy storage systems further diversify our own portfolio and this project continues our growth trajectory while complementing our extensive renewable development plans.”