The UK Green Investment Bank (GIB) is supporting two renewable energy projects in Scotland.
It is one of three investors in Albion Community Power (ACP), which has committed nearly £5 million to the development of hydropower schemes in the Highlands.
The projects – 500KW Liatre Burn on the Glen Cannich estate and 500KW Abhainn Bruachaig near Kinlochewe – are expected to generate around 2.8GWh of electricity every year.
That’s equivalent to powering 700 homes.
Construction of both projects is underway with completion expected before the end of the year.
Edward Northam, Head of Investment Banking at GIB said: “Community-scale projects improve the efficiency of the network by generating electricity close to where customers need it. We believe that decentralised schemes like Liatre Burn and Bruachaig are an important part of the energy mix and have a significant role to play in increasing security of supply, reducing costs and cutting greenhouse gas emissions.”
ACP Chair Volker Beckers added hydropower “has a proven track record of generating strong and stable returns for investors”.
Earlier this months the UK Government launched the GIB privatisation process.