An eco-action group in West Oxford is aiming to harness the power of the elements as it competes for a £1m prize pot to tackle climate change.

The vision of Low Carbon West Oxford (LCWO) to put solar panels on the roofs of willing businesses and construct a hydro-electric generating plant at Osney Weir has seen it make a 100-strong nationwide shortlist for the Big Green Challenge.

The group won through against bids from 360 entrants and hopes to make it into the final 10 of the competition where it will receive financial backing and a year's support to get the project up and running.

LCWO members believe they could produce 250,000 kilowatts of electricity per year if they can get backing for the hydro turbine scheme - providing enough energy to power more than 70 homes.

The energy could then be sold back to the national grid and provide a regular income stream.

The group is also in talks with local businesses in Botley and West Oxford to take part in a pilot study to put 250 square metres of solar panels on their roofs.

The panels would generate 20,000 kilowatts of electricity per year - enough to power about six households.

Project leader Barbara Hammond whose home in East Street has a heat pump powered by the River Thames, said: "In West Oxford we have got good conditions for green energy.

"We have lots of large businesses and warehouses with south facing roof tops that are unobstructed by trees for solar panels.

"We also have lots of water flowing through it so we're very interested in getting a micro hydro scheme going.

"We have got a one in 10 chance of being shortlisted so we're keeping our fingers crossed. We've tried to make the bid as solid as possible.

"It's such a great opportunity. Even if people aren't convinced by the green arguments they should be convinced by the economic reasons after the big increases in fuel costs."

Oxford Lord Mayor and local city councillor Susanna Pressel, who is a member of LCWO, said: "The most exciting part of this project is the micro hydro scheme. When you look at the water thundering over the weir you realise how good it would be to use that power to generate electricity."

Plans for a hydro electric scheme were first mooted by the Osney Sustainable Island Group in 2003, but £8,000 of funding is needed to conduct a feasibility study.

The group also plan to place anemometers on top of buildings in West Oxford to check wind speeds and see if any are suitable sites for a wind turbine.

LCWO Chairman Ruth Mayne said: "We could do something really good that would be a model for other communities in Oxford and beyond to follow."

A decision on the 10 finalists will be made by the National Endowment for Science, Technology and the Arts at the end of July.