A North Yorkshire community group is masterminding the £500,000 renewable energy project – thought to be the biggest of its kind in the country – along the River Esk and its tributaries.

Plans have been drawn up for turbines to be installed at six sites across the North York Moors at Danby, Egton, Ruswarp, Sleights, Castleton and Beck Hole, near Goathland, to harness the power of the water.

It is hoped that the scheme will provide enough energy for 600 homes and prevent 860 tonnes of carbon dioxide emissions being produced every year.

Colin Mather, chairman of the Esk Valley Community Energy Group which is overseeing the project, said: "We have made significant progress over the past year in assisting local households in reducing their own carbon footprints through energy efficiency and micro-generation.

"This project provides the opportunity for us to take that work to a new level by developing local renewable power generation on a scale which will make a significant contribution to meeting our own energy needs as a community."

The plans were drawn up after a survey was commissioned by the group with funding from the Sustainable Development Fund, which identified the six sites where commercially viable projects could be delivered.

The scheme will be officially launched at a public meeting later this month when the findings of the survey will be presented.

The North York Moors National Park Authority's community renewable energy officer, Peter Jones, said: "The group is pushing the boundaries of community-owned energy development."

While planning permission is needed from the authority along with consent from the Environment Agency to alter watercourses, the first phase of the project could be running by the end of March next year.

It is hoped that all six sites will be finished by early 2010.

The £500,000 hydro-electric project is part of a wider £1.2m scheme, part-funded by the regional development agency Yorkshire Forward, which is aiming to promote renewable energy throughout the North York Moors.

The official launch of the project will take place at Danby Village Hall at 7.30 pm on Thursday, September 27.