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SUPPORT FOR RENEWABLE ENERGY - AGRICULTURE (Rural Priorities)
Article 20 (b)(i)
Measure code (121)
Rationale for Intervention
The 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 Ministers have ambitions to extend beyond the target of generating 40% of electricity from renewables by 2020.
Support for investment in renewable energy technologies by farmers will contribute to this ambition. This support will assist in minimising emissions of greenhouse gases in support of the Scottish Climate Change Programme. It will also encourage the development of sustainable agriculture businesses in Scotland, which are competitive and contribute to local economies.
The cost of the initial capital investment in the technology and equipment required to establish renewable energy capacity is the main barrier to businesses choosing to install renewable energy systems. By contributing to these costs, we can ensure that Scotland's renewables energy capacity continues to grow and that the associated additional benefits are optimised.
Objectives
Supporting capital costs in renewable energy technologies and equipment to help achieve our ambitions for a sustainable and greener Scotland. In addition, as part of a wider programme of improving business viability will pump-prime individual businesses to improve their income stream from their agricultural activities and encourage reductions in carbon emissions.
Scope and actions
Support will be available to provide a contribution towards the eligible costs of purchase and installation, construction, upgrading or development of infrastructure and/or equipment to enable agricultural businesses to develop small scale renewable energy capacity.
Definition of beneficiaries
Agricultural businesses.
Description of the type of technology or equipment
- Small scale wind turbines
- Hydro-electric turbines
- Bio-diesel treatment and storage equipment
- Oil extraction equipment
- Solar panels
- Automated woodfuel boilers
- Heat pumps
- Solar water heating
- Anaerobic digestion equipment using slurry and other agricultural by-products in the production of energy
- Supply chain equipment
- Specialist equipment for harvesting, pre-use processing ( e.g. dryers, chippers, pelletisers), quality assurance ( e.g. for checking moisture content, chip size etc) and handling.
Type of support
Contribution to capital cost will be a one off payment in arrears. Before payment is received beneficiaries must:
- produce the necessary documentation to demonstrate that the renewable energy system was installed by a registered installer and that the technology is on a Department of Business, Enterprise and Regulatory Reform accredited list;
- demonstrate that energy production is mainly for businesses' own consumption as a consequence of modernising the farm business. Support to diversify the business through this measure is precluded.
- produce a receipted invoice.
Aid intensity
Up to 50% of eligible costs in Less Favoured Areas (60% for young farmers)
Up to 40% in non-Less Favoured Areas (50% for young farmers)
Quantified targets for EU common indicators
Measure Code 121: Modernisation of farm holdings |
|---|
Indicator Type | Indicator | Indicative Target |
|---|
Baseline (Lead Indicators) | | Baseline value |
Objective 6^ | - Labour productivity in agriculture
| €54,602 |
Objective 7^ | | €127.2m |
Input | - Amount of public expenditure (total)
| |
Output | - Number of farm holdings that received investment support (division according to gender, legal status, age category, type of investments - FADN- and type of agricultural branch)
| At least 10,000 holdings |
- Total volume of investment (division according to the type of investment - FADN- and type of agricultural branch)
| €158m |
Result | - Number of holdings introducing new products and/or techniques (division according to type of redeployment of production)
| At least 5,000 holdings |
- Increase in gross value added in supported holdings (€)
| €174m |
Additional Result | - Number of holdings completing actions related to water quality
| 1,000. |
Impact # | - Economic growth (net value added in Purchasing Power Standards)
| Increase. Targets will be confirmed once baseline values on beneficiary population are available. |
- Labour productivity (€ per FTE)
|
Additional Impact | - Contribution to combating climate change (increase in production of renewable energy for support for renewable energy measure)
| Increase Qualitative change in production. |
*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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