Up to £725 million could be generated by renewables projects on the Scottish Islands over the next 25 years, according to a new report.

The independent paper, published by Baringa and commissioned by the Scottish Government, provides analysis of the economic opportunities available by deploying renewables projects to the Scottish Islands.

Key issues in the report include:

• Economic benefits. Up to £725m for the island economies, including up to £225m in community benefits.

• Local economic stimulus. At peak of up to £83m a year or an additional 5% boost to local economic output on average across the Islands.

• Revenues to community owned equity. Totalling up to £390m for local communities from island generation projects.

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• Employment boost. Up to 2,000 jobs created in the peak development phase across the Islands.

• Alleviation of grid constraints. In the Orkney Islands alone that could increase income to existing wind developments by around £2.7m annually.

In addition, up to 5% of Great Britain's total electricity demand market could be supplied by the Western Isles, Orkney and Shetland by 2030.

Overall, by appropriately investing in grid infrastructure and generating assets, the Scottish Government said renewable energy deployment on the Islands 'could grow rapidly' by the early 2020s.

Energy Minister Fergus Ewing said: "This report confirms the potential of the vast renewable resources of our islands. They are arguably the best places in Europe to deliver renewable energy.

"The wind speeds are the strongest and they have the best potential for wave and tidal energy in the future.

"The potential considerable economic and employment benefits from renewables means it is vital for the UK Government to deliver on their commitment to the islands. The Council leaders and I have therefore written today to the Secretary of State Amber Rudd MP.

"We are urging her Department to progress the necessary EU permissions immediately, and to bring forward a viable package of support in the coming weeks that supports the vital grid connections to the three island groups."

(LM/JP)