Mayor of London unveils decentralised energy plan for capital

The Mayor wants to supply 25 per cent of the heat and electricity needed for Londoners from local energy schemes by 2025. This week, he announced four different tools and measures to get the plans underway. One of these was a London Heat Map, an interactive web-based map to help public organisations, property developers, registered social landlords and private investors identify the potential for decentralised energy opportunities in specific areas of London.

The vast majority of London's energy supplies currently come from large power stations miles away from the city, which the Mayor’s Office says is wasteful (up to two thirds can be lost before reaching its point of use) and dependent on fossil fuels.

Decentralising London's energy will, says the Mayor, will cut London’s carbon emissions by 3.5 million tonnes a year and create green collar jobs and save Londoners money on fuel bills. Locally generated energy should also be more efficient and more secure for the future.

"I want to position London as the world's leading low carbon economy," said Johnson, announcing this week's measures. "There are massive opportunities flowing from the shift away from our fossil fuelled lifestyles including new 'green collar' jobs and financial savings from becoming less wasteful."

The London Development Agency (LDA), which is working with the Mayor's office on the plans, has allocated up to £16 million for decentralised energy projects over the next four years – from 2009 to 2010 – and is already working on 14 projects across the capital.

The measures launched this week also included a detailed prospectus – ‘Powering Ahead’ – for the private and public sector setting out the potential for more decentralised energy in the capital and a 'Decentralised Energy Centre of Excellence’ within the LDA to provide expertise and support to boroughs. The Mayor also announced he wanted to encourage the Greater London Authority to undertake decentralised energy opportunities, such as one by London Underground to secure 30 per cent of its energy needs from renewable sources.

Last year, Johnson said he wanted a quarter of London's energy needs supplied by combined heat and power plants within 20 years. He also announced he would create 10 new ‘Low Carbon Zones’ in the city and help businesses reduce their energy costs through a major expansion of the existing Building Energy Efficiency Programme to all public sector buildings, which represent 25 per cent of all commercial carbon emissions in London.

"We are working hand in hand with the business community and London's boroughs to create the ripe conditions to revolutionise the way we power our city," said Johnson this week. "This is a fertile alliance between private and public organisations, which will reap significant dividends for Londoners."

Baroness Jo Valentine, chief executive of London First, which is working with the Mayor on the decentralised energy plan, said: "With the right public policy and the proper regulatory and commercial incentives, business is ready to play its part in delivering green energy for London."