Swedish company Mine Storage will lead a consortium of companies to develop an underground energy storage facility for mines.

Other companies which will work on the project include Swedish mining companies Boliden and Lovisagruvan, Swedish energy company Malarenergi, German hydropower equipment manufacturer Voith Hydro and Swedish engineering and design company AFRY.

Mine Storage has received funding from Sweden's innovation agency, Vinnova, for the project.

The consortium will work on a blueprint for the first-ever commercial underground mine storage facility, which could allow abandoned mines to be used as sites for energy storage.

"Many countries have thousands of abandoned underground mines, meaning mine storage facilities can fill a big gap in solving the energy storage and distribution dilemma," Mine Storage advisor Stefan Sadbom said.

Storage will become increasingly important as wind and solar energy increase their share in the energy grid, while rapid electrification continues and energy prices remain volatile, Mine Storage co-founder and chief executive Thomas Johansson said.

 The blueprint will focus on setting up a commercial mine storage facility in the Bergslagen area in Sweden.