A £60million boost for community-scale renewables led by the Green Investment Bank, has hit the spot, says environmental specialist Atmos Consulting.
The firm said that by focusing on upfront build and operation costs, rather than subsidising generation, the bank was removing barriers to development, and so offering access to long-term subsidy income for rural communities.
Greg Fullarton, Atmos Consulting’s Inverness-based regional director for the Highlands, said: “Community scale projects may not have the glamour of the big offshore and infrastructure projects but they do bring the benefits of renewable-energy development to grass roots level.
“They have the potential to regenerate communities that are starved of other sources of funding.
“Our enthusiasm has to be tempered by the relatively small number of projects that could be funded throughout the UK and the availability of grid connections, but we welcome this equity funding model.”
The £60million fund was announced by Business Secretary Vince Cable in February and is the largest single source of equity funding available for UK community-scale renewable energy projects.
Mr Cable has said that the new finance will fund up to 30 projects generating about 24 megawatts of new renewable-energy – enough to power 17,500 homes – and announced the first project, a new hydro-electric power scheme near Crianlarich, north of Loch Lomond.
The finance is provided by the UK Green Investment Bank and Strathclyde Pension Fund, and is channelled through Albion Community Power.
It will provide equity funding of between £1million and £10million for a broad range of community-scale renewable developments, including hydro-power, onshore wind and biogas projects.
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