New York utility regulators on Thursday approved AES Corp's (AES.N) proposal to build a $22.3 million battery project capable of storing 20 megawatts of energy in Union in Broome County.

"This facility's state-of-the-art batteries will store energy and deliver it back to the grid when needed. This project - the first of its type in New York - will help improve the ability to store energy, a critical component needed to help us further strengthen and expand our use of renewable energy," New York Public Service Commission Chairman Garry Brown said in a release.

AES will build the battery project at the Westover coal-fired power plant about 175 miles (281 km) northwest of New York City.

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