A Perth-based developer of small-scale hydro power has warned of a future threat to the industry if the Government withdraws financial support for renewable schemes.
Green Highland Renewables has constructed a number of hydro schemes in recent years and is about to embark on a £13.6 million project at Loch Eilde Mor, in the hills above Kinlochleven.
The scheme is fully funded by Green Highland’s owners Ancala Renewables and is one of a number of projects the firm is looking to develop across the Highlands.
“This is a really exciting project and marks the start of an extremely busy two years for our firm,” chief executive Mark Mathieson said.
“In the last four years we have constructed and commissioned 25 schemes totalling 17MW across the Highlands, and in the process have invested £62m the majority of this going to local construction firms and contractors.
“Add to this the £25m we have committed so far to new schemes this year, and it is clear our hydro projects will make a significant positive impact on the Highland economy.
“We have well over a dozen active schemes in our build pipeline with further investment to come, and the nature of our projects means the majority of expenditure goes on civil engineering, much of which is carried out by local firms.”
Despite the strong work pipeline, Mr Mathieson said the decision to cut subsidies for such projects could have a devastating effect on the sector.
“All of these schemes have secured a feed-in tariff from the UK Government,” Mr Mathieson said.
“The only sad note is that the recent cuts to hydro tariffs announced at Christmas means we will see next to zero new Highland schemes come forward for construction from 2018 onwards. It will be the end of an era.”
The Loch Eilde Mor project will start this month and part of the works access will be via a bridge over the river Leven, which forms part of the West Highland Way. A temporary diversion has been agreed and the bridge will be ready for public use by the beginning of April.
Mr Mathieson said the community was also set to benefit from the scheme, which will be commissioned in 2017.
He added: “We have engaged with the Kinlochleven Community Trust and will be paying community benefit of £5,000 per MW installed.”