A draft plan by the City of Sydney has suggested the metropolis could be powered by entirely renewable sources.

The recently released plan has identified enough waste resources within a 250 km radius of Sydney CBD to produce gas to meet the city’s power, heating and cooling requirements.

"This plan provides an invaluable road map detailing where all the renewable resources exist, how much it costs to harness them and how we can use them to help deliver a 100 per cent clean renewable energy system for Sydney," said Lord Mayor Clover Moore.

The draft energy Master Plan continues the city’s tradition of employing progressive power-generating technologies, including solar, wind, bioenergy and trigeneration – an efficient technology that produces power, heating and cooling from the one power source.

Sydney has set a target this year to reduce its energy and water consumption by 20 per cent compared to 2006.