MidAmerican Energy is looking to a new way to store energy to use in multiple different ways.

The utility company recently announced plans to install a lithium-iron phosphate battery system at a substation in Knoxville by the end of next month. The battery system can store up to four megawatt-hours and supply one megawatt of power for up to four hours. One megawatt of energy is enough electricity to power 900 average Iowa homes.

MidAmerican Energy officials say there are several benefits for having this kind of storage capability. It allows them to generate and store electricity during low demand times and release it when the demands are at their peak. Other benefits include: reducing the peak operating time for generators, enhancing renewable energy by storing energy produced by wind and solar and using it later and improving power quality and prolonging the lifespan of transformers.

Chicago-based Invenergy will handle the installation of the system, which will be housed in two truck-sized steel containers.