The Newmill Hall committee can press ahead with its energy-saving scheme after it was approved by Moray Council’s children and young people’s services committee yesterday.
The committee’s project manager Rod Lovie said everyone was excited about the project.
Newmill beat competition from 100 other UK communities to become one of 14 areas awarded £100,000 by the British Gas Green Streets project.
The area which uses the funding to create the best energy efficient scheme will be crowned the UK’s greenest community.
A car-free island, a solar-heated swimming pool and a BMX club that generates its own electricity are competing for an extra £100,000 prize.
Newmill’s plan is for a biomass wood boiler, which will heat the village hall in the evening and the Newmill Primary School during the day.
The community must also instal energy-efficiency measures in 20 village homes.
Installation will cost an estimated £120,000, of which £100,000 has been funded by the Green Streets project.
The community association said Community Energy Scotland (CES) may fund the remaining £20,000.
Green Streets has pledged to deliver the funding if CES could not.
Members of the children and young people’s services committee yesterday approved the linking of the primary school to the village hall and agreed to purchase heat.
The Newmill Hall Committee will create an energy supply company (ESCo) to manage the project and be responsible for maintenance.
For the next 12 months, ESCo will sell the council units of heat at the price they are currently paying.
It is expected that the heat can then be charged at a lower rate.
The council does have the right to choose whether to continue or abandon the scheme if it fails to save money.
Mr Lovie, 39, of Main Street, Newmill, said he was delighted that the council had approved the plan. He added: “We are still waiting for various other building and planning permissions, but we feel the biggest hurdle was crossed today. We are fairly confident that the scheme will save money.”
The biomass boiler is expected to be installed by the end of the year.
The winners of the UK’s Greenest Community Award will be announced in April 2011.