Residents and businesses could soon see a reduction in their energy bills under new council plans to generate electricity and central heating locally.

The scheme, announced at a council executive meeting last week, will see a Combined Heat and Power network installed in the borough, which is a local network separate from the national grid.

The location of the network is yet to be announced but the Liberal Democrats have suggested storing it in a local leisure centre

Under the scheme, people who live in Islington could opt to get their electricity and central heating from the local network, rather than from a national provider.

When completed, the network will provide electricity and central heating that the council has promised will be cheaper and more environmentally friendly than mainstream providers like British Gas.

A similar system has been adopted by neighbouring Tower Hamlets council, where it has reduced resident’s emissions by 30%.

Combined Heat and Power networks save energy because they use the heat generated in making electricity, sending it to heat homes rather than letting it go to waste.

The council is hoping that the measures will also help to tackle the high level of fuel poverty in the area. Over a quarter of private tenants in Islington live in fuel poverty, meaning they cannot afford to heat their homes properly.

Councillor Greg Foxsmith, executive member for the environment said: “Islington Council is committed to improving the environment we love to live in.
“The Combined Heat and Power network will not only contribute further to this commitment, it will also save residents money.

“This is particularly good news for those vulnerable residents who have struggled to afford much-needed fuel during our cold winter months.”

The proposed scheme is part of the council’s ambitious target to cut carbon emissions in the borough by 40% by 2020, following a campaign from Islington Friends of the Earth. This is the biggest target set by any London borough council.

Duncan Walker, a representative for Islington Friends of the Earth said: “We are happy with the commitment to the 40% reduction that Islington Council has made.

“In the past some other boroughs have tried to do CHP and not succeeded in making it fully efficient.

We are keen to make sure that it is done properly in Islington, burning the most efficient fuel and keeping the network close to the users to make the most use of the heat produced”

Other plans include installing solar panels on the Walter Sickert community centre in Canonbury and on the newly developed post office at Highbury Corner.