17th April, 2013

London Mayor Boris Johnson is bidding to enable the capitalís small electricity producers to sell power to the market at a better rate. The Mayor, who has a target to produce 25% of Londonís energy from local sources by 2025, is the first authority in the country to apply to market regulator Ofgem for a new type of electricity supply licence. Initially the licence will allow the Greater London Authority (GLA) to buy excess electricity produced by Londonís boroughs and public bodies before selling it on, at cost price, to other public sector organisations, such as Transport for London, the Metropolitan Police and NHS hospitals. If the scheme is a success the Mayor plans to extend it to include private sector energy producers in the capital.
Increasing revenues for smaller generators will improve the viability of local energy projects in London. The Mayorís office says that in the short term, the approach could help bring in more than £300 million of investment for 22 heat and power projects in the pipeline. In the longer term, it says it could help generate more than £8 billion of investment and around 850 jobs a year until 2025.
Twelve boroughs already have schemes that could benefit. Together they are capable of generating around 76MW of electricity. These types of schemes primarily heat local buildings through the electricity generating process. For example, Islingtonís Bunhill heat and power project uses a gas engine.

This article first appeared in Building4Change.com

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