The 7.5 Megawatt (MW) Kildermorie scheme is the largest new hydro power scheme for five years in Scotland.
There will be up to 80 new jobs during construction and income from the scheme will go back into managing the Kildermorie Estate.
Energy Minister Jim Mather said: "In capitalising on our greatest natural asset - our water - Scotland has long harnessed green energy from arguably the most successful hydro schemes in the world.
"This scheme follows in that proud tradition and is the largest to be consented in Scotland for five years. The scheme will bring a substantial number of jobs and local economic benefits and is an excellent example of how we can use our natural resources to create new, low carbon jobs."
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In December 2009, SSE Generation Ltd submitted an application for consent to construct and operate a hydroelectric generating station at Kildermorie, Ardross, Ross-shire with a generating capacity of 7.5 MW.
The Highland Council raised no objections to the application subject to a number of conditions. Three representations were received during the consultation exercise. Two objections related to landscape and visual issues and these issues have been addressed in conditions attached to the consent. The other representation did not object to the proposal, but expressed concern about grid connection.
The Scottish Government's target is to meet 50 per cent of electricity demand from renewables by 2020. In 2008, 22 per cent of electricity demand came from renewables. There is around 7 Gigawatts (GW) of renewables capacity installed, under construction or consented around Scotland, which will take Scotland beyond the interim target of 31 per cent of Scotland's electricity demand from renewables by 2011.
The Scottish Government's Energy Consents and Deployment Unit is currently processing 33 applications (24 onshore wind, 6 hydro and 3 thermal), amounting to over 5GW.
The Scottish Government has now determined 42 energy applications, including approval for 35 renewable and two non-renewable projects since May 2007 - more than double the number of determinations than over the whole of the previous four years, in which 19 projects were determined.
(GK)
