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5.3.1.2.2. Improving the economic value of forests
SUPPORT FOR RENEWABLE ENERGY - FORESTRY (Rural Priorities)
Article 20(b)(ii)
Measure code (122)
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 foresters 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 forestry 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 forestry 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 forestry businesses to develop small scale renewable energy capacity.
Definition of beneficiaries
Forestry 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
Up to 40% in non-Less Favoured Areas
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