Underground stations could be powered by "clean electricity" as Sadiq Khan announced the first moves towards cleaning up the city's energy.

The Mayor of London today announced that City Hall has taken a step closer to securing a license which could be used to provide "clean electricity" to power underground stations.

Ofgem, the government regulator for gas and electricity markets, has confirmed that the Mayor has applied for a type of junior electricity supply licence called ‘licence lite’, with the aim of the licence being granted in September.

What is licence lite?

When the licence is granted, City Hall will become the first local authority in the UK to hold a special ‘licence lite’.

It will allow it to buy energy from small, low and zero carbon energy generators, and sell it directly to the public sector to help meet the sector’s electricity needs.

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The 'Licence Lite' scheme means that electricity can be bought and sold at very competitive prices, benefiting both the clean energy generators and consumers.

Once it is introduced, the Greater London Authority will buy clean electricity from a generator panel including five London boroughs such as Westminster, social housing provider Peabody and energy companies Scottish & Southern Energy and Vital Energy.

The Mayor will then aim to supply it, also at a competitive rate, to help power escalators and ventilation systems in tube stations, offices and other facilities.

London could generate its own cleaner energy

City Hall have said by providing energy generators with a better price for their electricity this new scheme could help London generate more of its own energy in a much cleaner way.

The idea is predicted to create £300 million of additional investment by 2021, 1,650 short term construction jobs and 160 permanent jobs in operating the low carbon centres and networks.

The Mayor’s Energy for Londoners scheme will also expand the use of solar power across the city, and support communities who want to set up their own green energy generation schemes.

The Mayor will use his new role to discuss joint actions on environmental issues with Mayors from major cities across the world

Sadiq Khan said: "I want my daughters and every Londoner to grow up in a city that is cleaner and greener, in which people aren’t dying because the air is so filthy.

"And I want London to be at the cutting edge of new green technologies, generating the growth and jobs of the future.

"My new ambitions for Energy for Londoners, and my new role as Vice Chair of the C40 will ensure that London is a beacon to the world and helps to generate the opportunities that will accelerate the pace of change to create better cities for all.”

What will the Mayor do as Vice Chair of the C40?

The Mayor will use his new role to discuss joint actions on environmental issues, share London’s leading green innovation work and lower the price of green technology/solutions such as green buses.

Mayors from all over the world take part in C40 including the Mayors of Paris, Boston, Copenhagen, Hong Kong, Jakarta, Johannesburg, Los Angeles, Mexico City, Rio de Janeiro, Seoul and Tokyo.

C40 Chair and Rio de Janeiro Mayor Eduardo Paes said: “On behalf of all C40 members, it is my great pleasure to welcome Mayor Khan as our newest Steering Committee member.

"London was the founding city of C40 and has always been a vital member of the network.

"Mayor Khan’s strong commitment to action on climate change and bold ambitions for London will make him an invaluable leader within C40.”

Londoners have until Friday 29 July 2016 to feed back on the first round of the Mayor’s Clean Air Action plan which proposes a range of measures including new charges for the oldest most polluting vehicles entering central London from 2017, a expanded Ultra Low Emission Zone to the North and South Circular, and improved alerts for high-pollution episodes.

A further more detailed consultation will take place later this year and some measures could be implemented as early as 2017.