Energy officials from Hawaii and Japan will be testing cutting-edge technology designed to allow utilities to integrate greater amounts of renewable energy into their grids. The two-year project will be located in the Kihei region of Maui.

Gov. Neil Abercrombie and President Hideo Hato of the Japan-based New Energy and Industrial Technology Development Organization convened at the State Capitol on Tuesday to sign an agreement for the $37 million project, which is expected to be operating by 2013.

Specifically, the demonstration project will test “smart grid” technology, which is often touted as the holy grail in allowing more intermittent energy sources, such as wind and solar, onto the grid while maintaining system reliability.