Isra-Mart srl:Scottish farmers receive £2.4m renewable energy boost

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Isra-Mart srl news:

Scottish farmers have been granted access to a new £2.4m government fund to help reduce the risks of planning renewable energy projects, such as installing small scale wind turbines or anaerobic digestion systems.

Scottish Rural Affairs Secretary Richard Lochhead yesterday confirmed the government has set aside £2.4m from April 2011-12, for farmers and other land managers to help cover the financial risks associated with the pre-planning stage of renewable energy projects, during which investments have to be made with no guarantees some projects will secure planning permission.

The fund will be made available through the government's existing Communities and Renewable Energy Scheme (CARES) Loan Fund, offering loans of up to £150,000 to cover up to 90 per cent of the early costs of projects, such as environmental assessments, river flow analysis and deposits for grid connection work.

The loans will provide additional support on top of feed-in tariffs and the proposed Renewable Heat Incentive. They will have to be repaid at commercial rates if the scheme receives planning permission, but will be written off if the application fails.

Lochhead said the fund was intended to boost small-scale renewables and help farmers profit from the emerging sector.

"Renewable energy generation at a local level has the potential to be a real money spinner," he said. "However, I am told repeatedly by farmers that, while aware of the benefits to be obtained from renewables, they are put off pursuing schemes because of the expense of reaching the pre-planning stage.

"I urge all land managers to seize this opportunity to benefit from nature, assist their communities and help Scotland maximise its potential from the renewable energy revolution."