Scottish government looks into loan fund for energy projects

The Scottish government has commissioned a feasibility study to look into the early stage financing for renewables projects. It will be carried out by the Scottish Agricultural College in conjunction […]

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By Monika Stulpinaite

The Scottish government has commissioned a feasibility study to look into the early stage financing for renewables projects.

It will be carried out by the Scottish Agricultural College in conjunction with Community Energy Scotland and will report back in three months.

The study will consider whether a loan fund could be established that will encompass the needs of both the wider community and landowner/farming businesses.

Speaking at a Scottish and Southern Energy business reception at the Royal Highland Show, Environment Secretary Richard Lochhead said: “During the last few months I have listened to stakeholders including landowners, farmers, local business and communities who all wish to develop and own renewable energy projects using our abundant natural resources.

“A major stumbling block identified by all these groups is access to finance at the high risk pre-planning stage, where they are still at risk of being turned down. Advice from the Forum for Renewable Energy Development Scotland confirms this.

“Community renewables encompasses local ownership of energy, by a wide range of stakeholders including community groups, landowners, farmers, and business. Many local communities across Scotland have already secured benefits, and we want to achieve much more and on a more ambitious scale.”