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SUPPORT FOR RENEWABLE ENERGY (NON LAND-BASED) (Rural Priorities)
Articles 52 (a)(ii) and 52 (b)(i)
Measure code (312) and (321)
Rationale for Intervention
Scottish Executive's key objectives for renewable energy include making the most of Scotland's renewable energy potential and that a diverse mix of technologies will provide an increasing proportion of Scotland's energy needs from clean, renewable sources. Scottish Executive has set a target of 50% electricity generated in Scotland to come from renewables sources by 2020.
Support for renewable energy provision is a means to reduce Scotland's carbon footprint, and improve economic performance, particularly in remote rural areas. The Scottish Executive is also committed to produce a Renewable Heat Strategy. Heat production from renewable systems will contribute to delivering this strategy.
The initial capital costs required to establish renewable energy capacity are a significant barrier to businesses and communities, and makes them less likely to choose a renewable source of generation as there are cheaper alternatives. By contributing to this cost, we can ensure that the renewable option becomes more viable.
Objectives
The objective of this measure is to encourage the investment in micro renewable energy systems and in doing so, contribute to increasing the amount of electricity and heat produced from renewable resources to help achieve the ambitions 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 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, if involved in the supply of wood fuel.
- direct set up costs related to the creation of producer groups, including legal and administrative work, 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 DBERR accredited list; and
- ensure all final claims to be certified by an independent accountant
Beneficiaries
Producer networks, rural businesses and communities.
Description of the type of technology or equipment
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; and
- Supply chain 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
Start-up costs: reimbursement against total costs.
Transitional Arrangements
This is the first time that support for renewable energy has been available from this source.
Quantitative Indicators and Targets
Measure Code 312: Support for the creation and development of micro-enterprises |
|---|
Indicator Type | Indicator | Indicative Target |
|---|
Baseline (Lead Indicators) | | Baseline value |
Objective 28 | - Employment development in the non-agricultural sector
| 400,000 persons |
Objective 29 | - Economic development of the non-agricultural sector
| €33,090m |
Objective 30 | - Self-employment development
| 79,000 persons |
Input | - Amount of expenditure (total)
| |
Output | - Number of micro-enterprises supported (division according to status, age category and type of micro-enterprise)
| 600 enterprises |
Result | - Gross number of jobs created (division according to, gender age, and on-farm/off-farm jobs)
| 60 |
- Increase in non agricultural gross value added in supported businesses
| €53m |
Additional Result | - % of new micro-enterprises supported that remain in business each year
| 60% |
Impact # | - Economic growth (net value added in Purchasing Power Standards
| Increase. Target will be confirmed once baseline values on beneficiary population are available |
- Employment creation (division according to age gender and on/off farm)
| 40 |
*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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