COPENHAGEN, Feb. 8 (Xinhua) -- Danish Oersted, a renewables company that was rebranded from Dong Energy, on Thursday announced its plan to set up a storage pilot project in Changhua County of China's Taiwan Province.

The pilot energy storage system, to be based on lithium-ion battery technology, will be the first facility in Taiwan, Oersted said in a statement.

The company will work together with the Changhua County government, Taipower, Industrial Technology Research Institute (ITRI), and National Changhua University of Education (NCUE), to establish a consortium for energy storage research and promote local development of a green energy ecosystem, it added.

"Energy storage technology has evolved rapidly, and the costs continue to decrease. The development of energy storage systems in the future will accelerate the integration of renewable energy supply and demand," said Martin Neubert, executive vice president and CEO of Wind Power at Oersted.

According to Neubert, the energy storage project in Changhua, which is Oersted's first storage project in Asia, aims to collaborate with local partners to enhance grid efficiency and stability.

ITRI will lead the energy storage research by working with education institutions in Changhua.

At present, Oersted has four offshore wind projects under development off Changhua County with a total capacity of 2.4GW.