Following approval of the expansion by the Scottish government, some 7.5MW of capacity will be added to the scheme, located on the Glass river in Inverness-shire, with commissioning expected towards the end of 2005.

Scottish and Southern Energy, the owner of the project, expects electricity generated by Fasnakyle to qualify for UK renewables obligation certificates.

Lewis Macdonald, Scotland’s deputy minister for enterprise and lifelong learning, said the extension would make an important contribution to the Scottish Climate Change programme.

Scotland aims to generate 18% of its electricity from renewable sources by 2010, rising to 40% by 2020.