An Ergon Energy led delegation has made a formal presentation to the Australian Greenhouse Office (AGO) in an effort to secure Townsville and Magnetic Island as a site for a sustainable energy trial under the Federal Government's $75 million Solar Cities programme.

Presenting its detailed proposal to the AGO in Canberra on Tuesday, Ergon Energy explained its proposal for a unique seven year trial of how solar energy and energy efficiency could deliver economic and environmental benefits in a specific trial area.

The proposed trial incorporates sub projects which are underpinned by Townsville City Council's Citisolar community capacity building program.

They include photovoltaic (solar) panels and energy-efficient products and services incorporated into existing homes on Magnetic Island, a portion of new homes in two residential estates and a Townsville central business district commercial building.

Manager Regional Services Paul Ryan said," Our presentation was exceptionally well received. We are quietly confident that our project could be a winner for Townsville and Queensland but we are also realistic enough to understand that the competition is tough."

An announcement from the Australian Greenhouse Office is expected in the next few months.

The Ergon Energy led delegation included representatives from Townsville City Council and the Queensland Government.

Ergon Energy is hoping to create an iconic project for Queensland through the Solar Cities initiative, showcasing benefits to the environment, customers and local communities. The project will also support innovative electricity supply technologies in a practical and large scale application.

The Townsville Solar City Project was one of 11 projects asked to develop a business case to host a Solar Cities trial and receive up to $15 million in project funding.

"If the consortium's business case is accepted, the Townsville Solar City Project will showcase the future of sustainable urban living in Australia, through greater use of renewable energy sources, deeper community engagement and involvement, efficient use of electricity and education about escalating energy consumption."

The Federal Government's Solar Cities programme aims to provide a model of how solar energy and energy efficiency can deliver economic and environmental benefits in a specific trial area.

When the Solar City Project is fully implemented, we estimate it will have reduced greenhouse gas emissions by an average 7,000 tonnes per year over the life of project - about the same as taking 1,700 cars off the road," he said.

Mr Ryan added the Solar City Project has the potential to establish Townsville as a proving ground for a new way of tackling many energy challenges, particularly around demand management and distributed generation.