The National Trust has launched a renewable energy trading company to sell electricity generated on its land back to its supplier, as part of the charity's plan to save £4m per year on its energy costs.

Yesterday it switched on a hydro-turbine at the Hafod y Llan farm in Snowdonia, Wales, which is the first of the charity’s planned large-scale renewables projects. It took three years to build and cost £1.5m. 

The hydro is expected to generate 1,900 MWhr per year, which is enough to power around 445 homes. The power produced will be sold via the grid to the green electricity supplier, Good Energy.

Patrick Begg, rural enterprises director at the National Trust, said: “We’re lucky to be blessed with an abundance of natural resources that we look after for the benefit of the nation. Now with this new trading company we can harness some of the power generated by nature to help fund our conservation work.”

By 2020 the National Trust aims to generate half its energy from renewable sources and reduce its overall energy use by 20 percent, which it expects will save it £4m per year. Its annual energy bill is currently more than £6m.

It is looking to install renewable technology wherever it is appropriate and already has more than 250 small and medium-sized renewable energy schemes using hydro, solar and biomas technology at locations in England and Wales.

Last year the trust launched a partnership with Good Energy to provide clean energy at 43 of its historic properties. It has so far invested £3.5m in five pilot projects and if they are successful will invest £35m in the 38 other locations.