A hydro-electricity plant could be built on the River Derwent under plans being considered by councillors.
A site at Longbridge Weir, on the south bank of the river, has been earmarked by Derby City Council.
A spokesman said the authority had entered into a partnership with the Carbon Trust to reduce emissions.
If built, the station would annually generate about 780,000kW hours - enough to supply the needs of the Queen's Leisure Centre for about seven months.
Carbon technologies
The four-year project would cost an estimated £500,000 but is expected to generate around £50,000 worth of electricity a year.
Councillor Chris Williamson, leader of Derby City Council, said: "Harnessing the power of the Derwent is, of course, not a new idea.
"The textile mills that once operated along the river between Matlock Bath and Derby - including the Silk Mill - relied on water power to drive their machinery.
"We are looking at a 21st century version of that."
The Carbon Trust is a government funded body which helps business and the public sector cut carbon emissions, and supports the development of low carbon technologies.
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