GREENWICH COUNCIL will decide tomorrow night whether to proceed with setting up a power company to provide hot water and energy for Greenwich Peninsula for decades to come.
The council's cabinet looks likely to give the go-ahead to establishing the Peninsula Heat Network - a join venture with energy provider E.ON.
The new company would build a plant on the peninsula that uses gas and biomass sources to provide hot water and electricity to homes and businesses in the area.
Although existing properties could be connected, the new plant would primarily be intended for the thousands of homes planned, but yet to be built, on the peninsula, delivering on-demand hot water without the need for a gas boiler and savings on energy bills.
The planning masterplan for the peninsula that was adopted by the council in April suggested that the heating plant could be constructed in the southern part of the land between the A102 and Millennium Way.
The council has secured £7.3 million of funding through grants from the mayor of London and the HCA which it will plough into the new company in return for a minority shareholding and a place on its board.
Powers to establish the joint venture are contained in the Localism Act introduced by the coalition government, the report by council officers notes. The cabinet agreed to commission a feasibility study for the heat network in April 2010.
Building of new homes on the peninsula is expected to be kickstarted after a £500 million investment was just announced by Hong Kong-based Knight Dragon.