A hydro electric scheme, capable of powering up to 700 homes, has been given the go ahead by Scottish Ministers.
The run of river station, at Inverar in North Perthshire, will have an installed capacity of 1.2 Megawatts (MW).
Energy Minister Jim Mather said: "This decision is further evidence of how we are working to turn Scotland's diverse renewable energy potential into reality.
"Our economic recovery programme identifies the renewables sector as a key strength of our economy and one which can play a crucial role in helping Scotland through the current downturn."
Mr Mathers said Inverar is an example of a scheme which will operate in harmony with the environment and meet the electricity demands of around 700 homes.
Inverar Hydro Ltd applied for consent to construct and operate the run-of-river scheme in July 2007.
The proposal has been subject to a wide-ranging consultation.
(GK/JM)
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