Scottish government unveils local energy fund

First Minister Alex Salmond has announced a new £20 million local energy challenge fund. Community partners will be able to bid to be part of the scheme. The fund is expected to reshape how energy is supplied throughout the country with a view to affirming Scotland’s position within the energy market.

The fund, named Community and Renewable Energy Scheme Local Energy Challenge Fund can be tapped into by local partnerships, community groups, Local Authorities, charities, housing associations and businesses. Monies can then be applied to set up low-carbon energy pilot projects.

The Scottish Government has a target of 500 MW of renewables in community and locally owned projects by 2020. In addition the Scottish Government has published its Community Energy Policy Statement that sets out Scotland’s record of support for community projects and energy advancement.

The First Minister said:

“Today, my cabinet colleagues and I will undertake a series of visits in Arbroath, seeing first hand some of the great success stories of the Scottish economy. This is a confident Scotland, building on its strengths and ready to be a successful independent nation. This visit to Arbroath will not only reflect on the success of the local area, it will also highlight strengths we have across our economy and across Scotland. Industries like tourism, food and drink, construction are all areas where we have real strengths that will help drive our economy after we have secured independence.” “The new local energy challenge fund is a prime example of that. It is an opportunity to build on Scotland’s outstanding strength in renewable and low carbon energy and to reshape how energy is delivered and used in communities throughout the country. Scotland is already leading the way in the UK, helping communities to own and benefit from their own energy projects. By giving people a stake in heat and electricity generating technologies, we can address climate change through low carbon projects, and also tackle fuel poverty.” “We are already well on track to meeting our 2020 target with over 285 MW of community and locally-owned renewables in operation. This £20 million investment will take our commitment one step further and ensure more value from the generation is retained locally. Renewable energy is extremely valuable to Scotland’s economy, reducing our carbon emissions and in providing low carbon energy supplies, as well as jobs and long term investment.” “I am confident this fund will help facilitate some of the country’s most innovative and exciting energy projects, and it cements our position as a global leader in renewables and low carbon development.”