Leading energy solutions company E.ON and Inland Homes have announced they are working together to develop a low carbon community of more than 770 properties at Drayton Garden Village in West London.
The design and build contract, worth more than £4 million, is the first of its kind between E.ON's Sustainable Energy business and specialist brownfield property developers Inland Homes.
The community - made up of 773 homes, an 80-bed care home, a medical centre and four retail units - will feature low carbon heating and hot water systems to all properties.
Combined heat and power (CHP) units and gas boilers housed in a central energy centre will supply heat and hot water to the properties instead of standard gas boilers used in traditional developments.
Jeremy Bungey, Head of Community Energy at E.ON, said: "We believe decentralised energy centres such as the one that will serve West Drayton are a vital tool in reducing the UK's carbon emissions.
"By delivering lower carbon heating systems to developments like this we really are playing a key role in ensuring it's as simple as possible for people to lead more sustainable lives."
E.ON provided Inland Homes with a cost-effective, low-carbon solution ensuring that residents will benefit from lower heating costs, security of supply as well as a reduction in CO2 emissions.
Mark Gilpin, Planning Director of Inland Homes, said: "E.ON's expertise in decentralised energy generation and proven ability in managing the process from end to end is of great value to us in the development of eco-homes and businesses.
"With projects like Drayton Garden Village, we are able to set the standard for sustainable housing across the UK. It is truly remarkable to be able to offer people comfortable homes which allow them to significantly minimise their impact on the environment."
CHP systems are a more efficient way of generating heat and electricity and are typically installed on-site, supplying customers with locally-produced power with reduced carbon emissions. They can be fuelled in a number of ways, including natural gas, diesel, bio-diesel and bio-gas.