CUMBRIA'S first wholly community-owned hydro-electric power plant has officially opened as a result of a landmark project that was the first of its kind.

The plant, based at Killington Reservoir, was funded completely by public investors from Cumbria and Lancashire.

It will provide green energy for 70 homes, and save 1,600 tonnes of CO2 emissions over 20 years.

Phil Davies, chairman of Community Energy Cumbria, who led the project, said: "This idea was a reaction to seeing so many renewable energy projects in Cumbria being run by big corporations from outside of the county and all the money generated, and the work for the maintenance, going to outside companies.

"We are creating a renewable energy project that is Cumbria's, where the money we get stays within the local community."

Just over £300,000 was raised within weeks of the campaign starting, and the project used local businesses such as Ellergreen Hydro Ltd, Burneside, and civil engineering firm TK Robinsons from Old Hutton.

It is estimated that 98 per cent of the funds for the scheme were raised within Cumbria, and 88 per cent of the funds were then spent within the county.

"Investors are given a five per cent return," said Mr Davies. "We sell the green electricity to the National Grid , and use the money to pay back the contractors and investors.

"Also, one in every four pounds that comes back, we put into a community fund to help other projects within Cumbria. We are looking at 20 to 25 per cent of our income going straight back into the community."

Westmorland and Lonsdale MP Tim Farron, who unveiled a plaque to officially open the power plant, said: “I was delighted to officially open this hydro-power project. This scheme shows that it is not necessary to choose between supporting businesses or protecting the environment. This is a community-funded scheme built using local business expertise to provide green energy to our area.

“This Cumbrian project is a shining example of what determined local communities can do, and I hope it will inspire other similar projects. My heartfelt thanks and congratulations go to Community Energy Cumbria, and to all the other organisations and individuals whose hard work and commitment has made this project possible.”