The area, which covers Inverness-shire, Ross & Skye, Lochaber and the northern Highlands, is the first of three lots that are open for small scale hydro development. Under the new deal, GHR will identify suitable schemes and potential sites for development, which if agreed by the Commission, can be taken forward by GHR through the development, planning and – if consented – construction phases.

“As part of the effort to develop a diverse, low-carbon economy, Scotland has committed to seeing renewables deliver 20% of our total energy used and 50% of our gross electricity consumed by 2020,” said Cabinet Secretary for Rural Affairs and the Environment, Richard Lochhead, announcing GHR’s contract win. “Small scale hydro schemes can help to carry us towards that renewable energy future, but they bring many additional practical and tangible benefits to communities – from increasing the skills base for local trades, creating new jobs and bringing economic benefit.

The project is part of Forestry Commission Scotland’s drive to ramp up its contribution to generating clean and renewable energy by developing more wind and hydro energy projects on its land.

Separate negotiations with other companies for the same small scale hydro development rights in two other ‘zones’ are at an advanced stage. The Commission is also involved in early stage negotiations with wind energy developers.