Creating a network of local power stations would be far more efficient and lead to lower carbon emissions than building new nuclear power stations, according to a report commissioned by Greenpeace.

Decentralising Scottish Energy concludes that generating heat and electricity close to where it is needed could remove the need for nuclear power, as well as being cheaper, less polluting and decreasing Scotland's reliance on gas.

The report also says this approach would work well alongside a policy of harnessing Scotland's large-scale renewable energy potential.

The study by the World Alliance for Decentralised Energy argues that the current model across the UK relies on a few large power stations creating electricity miles away from the point of consumption. This method, developed in the 1930s, is so inefficient that two-thirds of the energy in the fuel is lost through power station cooling stations or as it passes along the grid.

Smaller, local stations can feed local combined heat and power schemes and sent the electricity shorter distances along the grid, saving 8% in carbon emission, cutting gas consumption by a similar abound and costing £1.8b less than building new nuclear plants.

Robin Oakley, Greenpeace's energy expert, said: "This is the closest thing to an energy silver bullet for Scotland. Decentralising energy will give us cleaner, cheaper and more secure power in the future."