The government will fund a new project which consists of heating and cooling buildings with water.
Innovate UK is providing £2.9 million to develop an energy network which will use heatpumps to extract heat from water circulating between buildings and deliver it to other apartments that need heating and transfer cold water to the ones that need cooling.
The Balanced Energy Network (BEN), developed by renewable energy firm ICAX in partnership with London South Bank University (LSBU), will also store excess energy which can be sent back into the grid.
BEN, which is worth £4 million, is expected to help the LSBU save energy and reduce costs without emitting carbon dioxide or any other environmentally damaging gas.
The construction of the project is scheduled to start in May.
Mark Hewitt, Director of ICAX said: “BEN will answer the Energy Trilemma by providing a mechanism for transferring heat from buildings that require cooling to buildings that require heating – thus providing a ‘heat sharing dividend’ to both buildings and to the planet.”