The Small Hydro Company has made an agreement with British Waterways to install 40MW of hydro power in sites located across the waterway network.
A deal worth £120 million between the two organisations has been made to generate 210,000MWh worth of renewable electricity per year from 25 hydro sites.
The sites for the
sustainable energy producing developments have not been disclosed as yet but five planning applications are expected to be submitted by the end of March.
Ed Miliband, Secretary of State for Energy and Climate change, said: "By committing to build small hydro power stations and wind turbines, British Waterways is playing an important role in generating renewable energy from the UK's natural resources. This will help cut carbon emissions and further secure energy supplies."
He added that the government hopes this collaboration will be the start of a number of communities, businesses and public sector organisations working together to deal with climate change.
Meanwhile, recent research from Professor Peter Lund revealed that renewable energy could generate 40 per cent of the world's electricity by 2050.
