£20m funding is to go towards the development of five new energy projects in communities across Scotland, the government has announced.

The funding allocation, from the Local Energy Challenge Fund, was announced by Scottish Energy Minister Fergus Ewing at the Community and Renewable Energy Scheme (CARES) conference, organised by Local Energy Scotland.

The fund was introduced last year by then-First Minister Alex Salmond.

The successful recipients are:

• £1.8m to Community Energy Scotland to develop viable grid connections for small scale generators in areas of constrained network on Mull.

• £6m to Insch Renewable Energy Consortium to develop a community energy system linking local energy demand with local renewable generation in a rural area of Aberdeenshire.

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• £3.2m to Castle Rock Edinvar Housing Association to develop local heat storage solutions for over 1,000 tenants across Falkirk and the Lothians.

• £6m to Highland Council to provide low carbon affordable heat and alleviate fuel poverty via a water source heat pump district heating network in Caol near Fort William – benefiting over 500 homes.

• £4m to Bright Green Hydrogen to use hydrogen to meet local transport, heating and storage needs across Levenmouth.

Mr Ewing said: "The Scottish Government is defining a distinctive approach to Scotland's future energy provision; putting communities at the heart of decisions about their local energy system; and empowering them to take an economic stake in new developments.

"These projects are a huge step towards defining a distinctive approach to Scotland's future energy provision. They will provide vital learning across extremely challenging areas, such as adding value to local economies, matching local supply and demand, and addressing fuel poverty.

"But we know this is just the beginning, and we want to support more innovations like these. This is why the Scottish Government will run a second Challenge Fund, subject to the next spending round, making up to £500,000 will be available in 2015/2016."

(IT/JP)