The island will inaugurate a new ‘virtual power station’ which uses an advanced IT system to balance the grid by quickly shifting supply and demand across the region.

The archipelago, situated between the Norwegian Sea and the North Atlantic Ocean, has considerable average wind speeds of 10 meters per second.

The virtual power plant would start within seconds, sending a signal to shut off demand for power from the three large industrial firms linked up to Power Hub technology.

Backed by the EU’s multi-million euro R&D project, Power Hub is aimed at developing new ways of integrating large volumes of renewable energy into grids by 2020.

Dong Energy lead IT architect for the project Anders Birke told BusinessGreen that the demo would go to plan as it has already been tested extensively.

"With its harsh weather conditions, the Faroe Islands is one of the most difficult places to install wind turbines and it’s totally isolated," Birke said.

"So if we can install the system here where it’s hardest, we’re optimistic that we can do it elsewhere."