The facility will provide heat and hot water for the Elmsbrook North West Bicester Eco-Town development.
The project is being developed by housing provider A2Dominion.
SSE will maintain and operate the plant, which harnesses waste heat from electrical generation exported to the grid.
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SSE Enterprise Utilities MD, Nathan Sanders, said: "We are delighted to play a key role in the exciting development of Elmsbrook. SSE will operate and maintain the heat network and energy centre indefinitely, providing 24/7/365 operation and customer care for all Elmsbrook residents connected to the new heat network."
Darrell Mercer, Chief Executive at A2Dominion, added: "Elmsbrook demonstrates that we can achieve truly sustainable standards in design and the lifestyle for residents, without compromising on comfort or quality. A district heating solution is a pioneering way to heat modern homes efficiently, and we hope that this and the other environmental features on this scheme will inform future development projects."
(LM)
