PLANS to run Britain’s biggest “smart grid”, a £54m scheme to test green technology on thousands of homes and businesses in the North, have been approved.

CE Electric, British Gas, Durham University and EA Technology have secured £28m from energy regulator Ofgem.

The project, aimed at helping adapt the National Grid to cope with local energy generation, will test smart meters, solar panels, electric cars and ground or airsource heat pumps on 14,000 properties.

Leaders say it could cut the country’s energy bill by £8bn and carbon emissions by 43 million tonnes.

The scheme will begin in Durham, Newcastle, Leeds and Sheffield next year.

Phil Jones, the president of CE Electric, which runs the region’s electricity network, said: “What is being contemplated in the electricity industry is nothing short of a revolution. 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.

“This is a brilliant opportunity for our region to stake an even stronger claim to be at the forefront of the low-carbon economy.”

Durham University will contribute through the Durham Energy Institute (DEI).

Professor Phil Taylor, from the DEI, said: “New problems require new solutions, and the combination of cutting-edge research with the ability to work with leading industry partners gives us the best chance of delivering real value to customers.”

Phil Bentley, the managing director of British Gas, which recently announced a seven per cent rise in energy bills, 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.”