Edinburgh Council has confirmed contractors have been appointed to develop a hydro at Harlaw Reservoir.
When completed, it will use energy from the water to power more than 50 homes.
Work will commence on site next week (8 September) when the land will be prepared for the installation of a turbine house. It is expected that the community-driven project will be completed by the end of the year.
Some 240 shareholders are backing the scheme, with around 70% from the local Balerno, Currie and Juniper Green communities, who have raised £330,000. A further £20,000 is still required for the project and additional backers are being urged to come forward.
According to the local authority, it is anticipated that the project will provide a 4% annual return for investors, and generate a £54,000 profit for the Balerno Village Trust, which will help to fund community initiatives.
Edinburgh's Lord Provost, Rt Hon Donald Wilson, said: "Harlaw Hydro is owned and managed by and for its members, who mostly hail from communities nearby the reservoir.
"This means they will directly benefit from the energy produced by hydro, as well as receive an equal say and share of the profits, while acting together for the common good."
Hugo Whitaker, Chair of the Balerno Village Trust, added: "This is a fantastic day for Harlaw Hydro and for Balerno as a whole, and Balerno Village Trust is currently gearing up to be able to take on its role in the project.
"The cutting of the first turf means that the project will very soon start delivering benefits for the community, and the Trust has a real role in ensuring that those benefits are fully available to the community."
(JP/IT)
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