Gateshead goes into the energy business

Gateshead Council is set to create its own energy company to operate the local authority’s new district energy scheme.

The council’s cabinet met on 6 October to hear that construction work is now underway for the district energy scheme in the town centre.

The scheme will allow heat and electricity to be generated locally and fed directly to public buildings, businesses and local homes in Gateshead. 

Both heat and power will be delivered from the energy centre in Quarryfield Road, via the dedicated network, stretching over 3km from the south bank of the Tyne into central Gateshead. 

The first heat and power will be produced in 2016.

The council plans to launch the Gateshead Energy Company, which will operate as a subsidiary of Gateshead Energy Holdings Company.

The company will be able to sell heat and power generated by the district energy scheme to third parties.

Jamie Hailstone is a freelance journalist and author, specializing in local government, transport and energy issues