Energy Minister Jim Mather says: “The Cia-Aig scheme is another good example of Scotland’s potential for smaller hydro schemes which generate green energy and cut emissions.

"The scheme will provide up to 20 low carbon jobs during construction and the developer will provide a community fund for long lasting benefits for the area. Viable hydro schemes that make the best use of our natural resources have a future in a low carbon Scotland.”

The Scottish Government aims to get 50% of electricity demand from renewable sources by 2020.