The First Minister is due to announce the launch of a £103m fund for renewable energy projects in Scotland.

Alex Salmond will announce the Renewable Energy Investment Fund, which has been established in order to encourage more private investment inn the sector.

The main forms of renewable energy which the Fund will focus on are wave and tidal energy and renewable district heating.

The release of the funding follows a deal between the UK Treasury and the Scottish government over the fossil fuel levy.

The levy was introduced in 1996 to raise money through traditional energy which could then be invested in renewables.

-- Advertisement --

This new fund is intended to be added to existing public and private sector finance schemes in Scotland and will help provide loan guarantees and equity finance in collaboration with co-investment partners.

The Scottish Investment Bank is due to deliver the REIF on behalf of the government and its enterprise agencies.

The first deals are expected to be followed through by the end of the financial year.

Niall Stuart, chief executive of trade body Scottish Renewables, said: "This £103m fund will inject much-needed investment into the development of the next generation of renewable technologies, such as marine energy and renewable heat.

"This kind of support can be a vital catalyst in attracting even greater levels of private investment," he said.

"Scotland is already at the forefront of developing and testing emerging wave and tidal technologies and, with the correct level of government support, we can become a global centre of excellence in both the deployment of these technologies and their accompanying supply chains."

(IT)