ABB's 24.5MW modular system will increase the renewable energy integration capabilities.
The project involves constructing a facility, which will incorporate ABB's flywheel and battery storage systems.
ABB automation and control technology will serve as the brain of the system and together with the storage facilitate smooth transition between power sources.
"This enables higher levels of renewables to be integrated, while maintaining system frequency and voltage, and mitigating power interruptions and outages," an ABB spokesperson explained.
Jamaica Public Service (JPS), the country's sole utility, has installed roughly 160MW of renewable energy capacity in a bid to reduce the country's dependence on fossil fuels.
The Caribbean island hosts roughly 100MW of wind power.
JPS CEO Emanuel DaRosa said the ABB system would provide a "model for other countries in the Caribbean".
In October, the Petroleum Corporation of Jamaica (PCJ) secured funding from the US Trade and Development Agency (USTDA) to complete a feasibility study for an offshore wind project off the Jamaican coast.
And earlier, in June 2017, ABB agreed a similar microgrid deal with a utility on fellow Caribbean island Aruba.