RWE signed at agreement back in January this year with the utility company to develop the 750kW project at the existing reservoir site.

The project will require integration with the existing water supply operations, improvement of an access road and construction of a powerhouse, and is to be built in the style of a Teesdale farm building in stone and with a pitched roof.

The work is expected to take around 12 months to complete, with the project operational in early 2011.