Scottish Renewables has raised concerns over future cuts in financial support, known as the Feed-in Tariff.

The cuts, which are planned for later this year, could significantly impact on the development of small scale hydropower, meaning projects worth £23m per year in Scotland could be affected.

There is currently a large backlog of licence applications for small-scale hydro in Scotland – and the UK – as a result of delays created by the UK Government's comprehensive review of the FiT scheme in 2011/12. The concern now is that by the time the proposed projects are approved, they could be subject to a new FiT rate, and one that is considerably lower than the current rate.

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The Scottish hydropower industry is now calling for the cuts to be delayed so that the high number projects currently caught up in the planning system do not disproportionately affect support for future schemes.

Joss Blamire, Senior Policy Manager at Scottish Renewables explained: "In a year when the Scottish hydropower industry is celebrating its 70th anniversary, and still produces the equivalent of 12 per cent of our electricity needs, it is extremely disappointing to learn that the next 70 years look so uncertain.

"The hydropower sector understands the need for the UK Government to cut the cost of the FiT scheme, however, the problem is this system is unsuitable for hydro and should be delayed for at least a year.

"Another longer term issue is that FiT support cuts are linked to expected, but not actual, build of hydro schemes. Unfortunately, due to uncertainties in financing, grid connections and construction in the hydro sector, projects may be further delayed. This means that projects in future could suffer from cuts in financial support as a result of schemes which were expected to be built, but never were."

(JP/CD)