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SUPPORT FOR RENEWABLE ENERGY (NON LAND-BASED) (Tier 3)
Articles 52 (a)(i) and 52 (b)(i)
Measure code (311) and (321)
Rationale for Intervention
Ministers have set a target that 40% of Scotland's electricity should be generated from renewable sources by 2020. Support for renewable energy provision is a means to reduce our carbon footprint, and improve economic performance, particularly in remote rural areas. The Scottish Executive is also committed to produce a Renewable Heat Strategy by the end of 2007. Heat production from renewable systems will contribute to delivering this strategy.
The cost of the initial capital investment in the infrastructure required to establish renewable energy capacity is a significant barrier to businesses and communities, and makes communities and rural businesses less likely to chose a renewable source of generation as there are cheaper alternatives. By contributing to this cost, we can ensure that a planned approach is taken, that longer term viability/subsidy requirement is considered and the additional benefits outlined above are optimised.
Objectives
The objective of this measure is to encourage the investment in micro renewable energy systems and contribute to increasing the amount of electricity and heat produced from renewable resources to help achieve the target set by Scottish Ministers.
Scope and actions
Support will be available to enable rural communities and rural businesses to develop small scale renewable energy capacity, that use a range of renewable technologies: biogas, biomass, bio-fuel and micro-renewables, where it can be shown these investments will:
- result in improvement in the viability of any non-land based business enterprise
- benefit a rural community
- produce environmental benefits
Where applicable, applications must show that a viable fuel supply and an adequate installation and after sales support will be available to the end user.
Renewable devices must be installed by an accredited installer.
Eligible costs include:
- purchase and installation, construction, upgrading or development of infrastructure and/or equipment of renewable device.
- purchase of specialist equipment for harvesting, pre-use processing, quality assurance and handling.
- certified training, which provides technical, marketing or business skills necessary to the success of the project.
- direct costs related to the creation of producer groups, including legal and administrative work in setting up, rental of office accommodation and purchase/rental of office and IT equipment.
Before payment is received potential beneficiaries must:
- produce the necessary documentation to demonstrate that renewable energy system was installed by registered installer and that technology is on DTI accredited list.
- ensure all final claims to be certified by an independent accountant
Beneficiaries
Producer groups, rural businesses and communities.
Domains of diversification covered
Support for:
- Small scale wind turbines
- Hydro-electric turbines
- Bio-diesel treatment and storage equipment
- Oil extraction equipment for oil seed rape
- Solar panels
- Wood fuel boilers
- Heat pumps
- Solar water heating
- Specialist equipment for harvesting biomass. pre-use processing, quality assurance and handling.
Aid Intensities
Variable up to 50% of eligible costs
Revenue costs based on sliding scale, up to 100% in first year, 80% in second year, 60% in third year.
Type of Support.
One off capital grant, one off payment against equipment and installation of renewable energy scheme
Set-up costs and training, reimbursement against total costs.
Financing
Total Public Support for Measure 311: 46.7 M Euro
Total EU Contribution for Measure 311: 15.4 M Euro
Transitional Arrangements
This is the first time that support for renewable energy has been available from this source.
Quantitative Indicators and Targets
Measure Code 311: Diversification into non-agricultural activities |
|---|
Indicator Type | Indicator | Indicative Target |
|---|
Baseline |
Objective 27 | - Farmers with other gainful activities | 22% |
Objective 28 | - Employment development in the non-agricultural sector | 400,000 |
Objective 29 | - Economic development of non-agricultural sector | €35,467 |
Input | - Amount of expenditure (total) | €41m |
Output | - Number of beneficiaries (division according to gender, age category and the type of non-agricultural activity) | 1,400 persons |
- Total volume of investment (division according to gender, age or type of non-agricultural activity) | €47m |
Result | - Increase in non-agricultural GVA in supported businesses (€) | Increase from baseline* |
- Gross number of jobs created (division according to on-farm/off-farm jobs, gender and age category) | No target set |
Impact # | - Economic growth (net value added in Purchasing Power Standards | Increase. No specific target Increase. No target set. |
- Employment creation (division according to age gender and on/off farm) |
Additional Impact | - Contribution to combating climate change (increase in production of renewable energy for support for renewable energy measure) | No target set. |
*As per guidance, the proxy for Gross Value Added is to be profit (revenue minus costs). The baseline value for this result indicator will be established once information on revenue and costs in supported enterprises becomes available.
# Impact indicators will be estimated based on output and result indicators
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