Japan's New Energy and Industrial Technology Development Organization is working with Los Alamos County and Los Alamos National Laboratory on the project.
It includes a solar photovoltaic array at the county's capped landfill, a battery storage system, a smart house and energy management system that will serve Los Alamos residents.
The Japanese group is also working on a related project in Albuquerque.
Researchers say the projects will demonstrate the viability of smart grid technology and help to establish international standards.
Such technology aims to balance the supply and demand of electricity through digital information that integrates renewable energy sources.
Gov. Susana Martinez, NEDO Chairman Kazuo Furukawa, Toshiba CEO Norio Sasaki and other officials attended Monday's ribbon-cutting ceremony.