New rules may cut off income for small-time generators

COMMUNITIES could miss out on millions of pounds of income from small hydro schemes due to new rules planned by Scotland's environment watchdog, it is claimed.

The proposals from the Scottish Environment Protection Agency (Sepa) could stop some hydro schemes being built and limit projects to certain areas and types of river, according to the national charity Community Energy Scotland (CES).

The government's new Feed-in Tariff scheme, which pays hydro scheme owners for each unit of electricity they produce, has led to a surge of interest from communities looking to reduce their carbon footprint and generate income.

But CES, which helps communities development renewables projects, says the Sepa plans, which have recently been consulted on, would limit the amount of water hydro schemes could take from rivers, thereby reducing output and making the development unviable.

Jamie Adam, CES central Scotland development officer, said:

"We would like to see Sepa take account of the social and economic benefits which these schemes can generate for communities."