The deal is part of Centrica's wider plans to build a series of flexible power facilities, having secured 15-year agreements for over 500MW of new capacity, mainly gas-fired.
The battery storage plant, which will be built at Roosecote in the north-west of England, will provide energy in response to peaks in demand.
Roosecote is a large site having originally been built for a coal-fired plant, which has been retired. A gas power plant at the site was demolished in 2015.
When operational the battery plant will be able to deliver power in under a second.
"The battery project has been developed specifically to support fluctuations on the network, which is becoming increasingly important now the UK has fewer thermal plants and a larger proportion of renewables connected to the grid," said a spokesperson for Centrica.
Construction of Centrica's 49MW battery asset will start in March 2017 and is expected to take around 20 months, entering operation in winter 2018.
In 2014 Centrica started disposing of its wind power portfolio, encompassing onshore and offshore assets, while it will continue to purchase wind generation.
This has included the joint sale of Glens of Foudland, Lynn and Inner Dowsing wind farms, which Centrica owned along with EIG Global Energy Partners.
Selling off generation assets, like wind power, while investing in technologies such as battery storage are part of the company's wider global strategy to position itself as a distributed energy and power business, focusing on energy services.
As well as providing grid support the battery system will enable Centrica to demonstrate to its commercial and industrial energy customers what is possible with this type of flexible asset.
Younicos has written multiple controls and functionality for its energy storage software platform. The battery assets save customers on energy expenditure and can also generate revenues by providing grid services.