Electricity consumers from Yorkshire cities in vanguard of energy revolution

Solar panels, electric car chargers, heat pumps and smart meters will be installed at homes in Leeds and Sheffield as part of a three-year-programme aimed at modernising the electricity grid.

The smart grid project, which will involve around 14,000 homes and businesses across the north from next year, will also provide utility companies with information on how customers are consuming electricity.

CE Electric UK is running the project with British Gas, Durham University and EA Technology.

Electricity and gas regulator Ofgem has awarded 27m to the scheme from its Low Carbon Network Fund. Organisers claim that if it accelerates the introduction of low carbon technologies nationally, by a year, it could save up to 8bn in energy costs.

Phil Jones, CE Electric's president said: "This is a project whose time has come. What is being contemplated in the electricity industry is nothing short of a revolution. It used to be that all of the power came from a few power stations to every property and all the energy flowed one way. The prospect of smarter networks opens up a whole new set of possibilities - customers can generate their own energy and use home-based technology to regulate how and when they use it."

British Gas will be providing smart meters to 14,000 customers to help them identify when they use the most power and how they can lower their heating bills.

Phil Bentley, the managing director of British Gas, said: "As a Yorkshireman it is great to see the north of England leading the way to lower energy bills and a low carbon world. British Gas is delighted to be part of this ground-breaking project.

Around 2,500 homes will be given solar panels, heat pumps and equipment to allow electric vehicles to be charged up. As well as measuring the impact that solar panels, electric cars and heat pumps have on customers' demand for power, the smart grid project will also explore ways of using new technology in the pricing and supply of electricity. Mr Jones added: "This is a brilliant opportunity for our region to stake an even stronger claim to be at the forefront of the low carbon economy."