The development at Loch Eilde Mor, near Kinlochleven, is expected to generate enough renewable energy to power around 2400 homes and create around 12 jobs during construction.

“I have carefully considered the application for development at Loch Eilde Mor and this is a good scheme which will provide a new green energy source and sustainable economic benefits – an excellent example of using our natural assets in harmony with the environment,” said Energy Minister Fergus Ewing. “The Scottish Government’s target is to meet the equivalent of 100 per cent of electricity demand from renewables by 2020, and every new hydro-scheme is another step towards realising that goal.”

The government has also approved a refurbishment of the existing Innerhadden hydro-scheme near Kinloch Rannoch in Perth and Kinross which will see the installation of two new weirs with self cleaning screens.

The Scottish Government’s target is to meet the equivalent of 100% of electricity demand from renewables by 2020. In 2009, 27% of electricity demand came from renewables. There is around 7GW of renewables capacity installed, under construction or consented around Scotland, which will take Scotland beyond the interim target of 31% of Scotland’s electricity demand from renewables by 2011.

The government has determined 52 energy applications, including approval for 43 new renewable and three non-renewable projects since May 2007. Another 33 applications (24 onshore wind, four hydro and five thermal) are currently being processed.