Up to 50 new power plants should be built in London close to the areas that will be using their energy, according to a new report.
London First, which commissioned the report, claims that by decentralising a quarter of London's electricity supply the capital could cut carbon dioxide emissions by 3.5 million tonnes.
The report, produced by Buro Happold, recommends building power plants near heavy energy users such as housing estates, amenities and hospitals.
Rod Macdonald, chairman of Buro Happold, said: "Decentralised energy will allow us to use energy currently wasted in large power stations in a more carbon-efficient manner. Our proposals will deliver a good portion of the carbon savings planned by the mayor by 2025 and position London as a leader in decentralised energy amongst major free-market cities."
E.ON's Carbon, Cost and Consequences, the company's Energy Manifesto, claims that decentralised generation has substantial possibilities.
It also notes that the largest publicly owned energy company is "passionate about renewable energy".
