EAST Cheshire will act as a pilot project for a heating scheme.
The borough council has secured £1 million from the European Investment Bank to create district heating schemes and accelerate the development of large-scale storage combined with smart grid technology.
The funding will contribute to setting up heat networks and help fund feasibility studies to give the programme the best chance of success.
Cllr Don Stockton, Cheshire East Council cabinet member for regeneration, said: “Having previously received support from the government for our heat network projects, it is hugely encouraging to obtain backing from the EIB.
“This shows we are at the cutting edge of the local energy supply agenda.”
District heating schemes, known as heat networks, are a system for distributing heat generated in a central location for residential and commercial requirements.
Jonathan Taylor, vice president of the EIB, said: “We are pleased to support Cheshire East’s aspirations to reduce energy use and help accelerate the development of innovative local energy projects.
“This represents the EIB’s first support to a predominantly rural borough in the UK and will help to cut energy costs for both residents and local businesses.’’
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