WIREDGOV

Nearly £4 million of loans to help communities across Scotland develop locally-owned renewable energy projects were announced yesterday by Energy Minister Fergus Ewing.

A Borders housing association which will use the proceeds to improve the houses it offers for rent, a Highland charity which will become more financially sustainable thanks to a hydro scheme and two Edinburgh community groups who wish to erect a wind turbine at a sewerage works are among the recipients, as well as communities all over Scotland.

The loans, offered through the Community and Renewable Energy Scheme (CARES), will help with the pre-planning costs of 42 renewable energy projects. The locally-owned projects will produce 56 Megawatts (MW) of wind and hydro capacity and make a contribution to the Scottish Government's target of 500MW of community and locally-owned renewable energy by 2020.

Of the 42 projects, 29 are community-owned, one is owned by a rural business and the remaining 12 have been brought forward by farmers. All have made commitments to benefit the local community.

The loans total £3.909 million, and will support 32 wind turbine projects, nine hydro schemes, and one anaerobic digestion plant. The loan scheme replaces a previous grant scheme.

Energy Minister Fergus Ewing said:

"These projects will not only help us meet our ambitious target of generating the equivalent of all Scotland's electricity needs to come from renewables by 2020, but also benefit their local communities.

"Scotland is already leading the way in the UK, helping communities across the country own their own energy projects, and to benefit from them - last year alone, CARES grants benefited more than 300 projects across Scotland

"We want every community in Scotland to share in the rewards of the green energy revolution, and the CARES loans are a practical way to make that happen.

"All profits from the community-run schemes will remain with the communities, and all the schemes run by local businesses have committed to give at least 20 per cent of their profits back to the local communities, ensuring the benefits of Scotland's natural resources are shared with everyone, as well as the jobs and opportunities the schemes will create.

"As the payments are all loans, they will empower not just these communities to develop experience and expertise, but countless more as the money is paid back and lent out again and again."

Rural Affairs Secretary Richard Lochhead added:

"Farmers understand the benefits to be gained from renewables, but have told me they are put off pursuing schemes by the expense of reaching the pre-planning stage. These loans help farmers and land managers overcome that hurdle and take up the opportunities offered by renewables.

"The renewables revolution offers our farmers and land-based industries the chance to cut energy costs, generate new income and contribute to our low carbon future. I'm delighted farms are now taking up this chance with the support of the CARES scheme and 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."

One farmer who has applied successfully to the Scottish Government CARES Loan scheme is Craig Mitchell of Hallcroft Farms near Saline, in Fife.

Mr Mitchell said, "The CARES loan scheme is absolutely essential to progress our idea for two 1.5MW turbines at West Craighouse. The local community council has recently completed a Community Action Plan for projects that matter most to local people. We are consulting with them at an early stage in the hope that the electricity generated by the wind turbines will eventually provide an invaluable source of funding for these local projects and everybody here can enjoy a lasting benefit from green energy generation in the community."

Loans awarded by Local Authority Area

• Aberdeenshire
  Braemar Community Limited - 59,000 pounds for 0.05MW hydro project Formartine Partnership - 138,000 pounds for 1.5MW wind project Fraserburgh Development Trust - 137,000 pounds for 0.8MW wind project Huntly Development Trust - 150,000 pounds for 1.75MW wind project J&WF Lind - 150,000 pounds for a 0.33MW wind project James B Presly & Co - 150,000 pounds for 2.3MW wind project R Cumming and Son - 135,000 pounds for 0.8MW wind project
• Angus
  R&N Cessford - £65,000 for 0.33MW wind project
• Argyll & Bute
  Ascog Farm - £95,000 for 1.5MW wind project Kilfinan Community Forest Co - £146,000 for 5MW wind project Jura Development Trust - £30,000 for 0.1MW wind project
• City of Edinburgh
  Balerno Village Trust Ltd - £20,000 for 0.065MW hydro project Greener Leith - £118,000 for 1MW wind project
• Dumfries and Galloway
  Barony College - £135,000 for 0.5MW anaerobic digestion project AH&HA Brown - £81,000 for 1.6MW wind project
• East Ayrshire
  L Borthwick and Sons - £82,000 for 0.85MW wind project
• East Lothian
  Berwickshire Housing Association - £124,000 for a 5MW wind project Dunbar Community Energy Co - £66,000 for a 0.3MW wind project
• Fife
  Crail Community Trust - £75,000 for 0.25MW wind project The Ecology Centre - £100,000 for 5MW wind project Halcroft Farms - £125,000 for 3.5MW wind project Kingdom Housing Association - £83,000 for 0.8MW wind project St Monans Community Trust - £44,000 for a 0.225MW wind project
• Highland
  Arthur W Simmers - £150,000 for 4.6MW wind project Charles A Simmers - £150,000 for a 4.6MW wind project Coigach Community Development Company - £150,000 for 0.9MW wind project Coinpeg - £56,000 for 0.1MW hydro project Scottish Wildlife Trust - £150,000 for 0.3MW hydro project
• Nan Eilean Siar
  Barra & Vatersay Wind Energy Ltd - £109,000 for a 0.9MW wind project
• Orkney
  Energy Action Westray - £96,000 for 0.5MW wind project
• Perth and Kinross
  Glendevon Energy - £149,000 for 0.75MW hydro project
• Scottish Borders
  Selkirk Regeneration Company - £140,000 for 2MW wind project
• Stirling
  Callander Community Hydro Ltd - £82,000 for a 0.24MW hydro project Thornhill Community Trust - £14,000 for a 0.5MW wind project
• South Lanarkshire
  A&J Allison - £27,000 for a 0.8MW wind project Castlemilk & Carmunnock Windpark Trust - £110,000 for a 3MW wind project TC Stewart & Sons - £114,000 for a 4MW wind project

CARES is a new scheme to support the development of community and locally-owned renewable energy projects which provide wider community benefits.

Loans are repaid in full, with interest, when the finance for the capital construction stage is finalised.

There is a binding legal agreement on community benefit of at least 20 per cent of the net profit before tax in the loan agreement.

Eligible organisations are constituted non-profit distributing community groups, constituted local community groups in partnership with other businesses or organisations including social enterprises, and farmers, land managers, rural small and medium enterprises and profit-distributing cooperatives.

Organisations wishing to apply for a loan under the scheme should contact Community Energy Scotland at info@communityenergyscotland.org.uk

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