Farm Diversification

Innerhadden Estate is situated on the hills surrounding Kinloch Rannoch near Pitlochry, Perthshire. Richard Barclay manages the family estate which covers some 5,500 acres of hill.

Why install renewable energy?

The Estate was struggling to make an income from 850 sheep and 30 cows when, in the 1985, a mixture of bad weather and entrepreneurial sprit led Richard’s father Leo to diversify into smoked venison. Rannoch Smokery is still a successful business today but doesn’t create enough income to run itself and the estate - which the family wish to maintain as traditionally as possible. A hydro scheme was considered to be the best and most environmentally friendly way to generate more income and safeguard the future of the estate.

How did you identify the type and scale of renewables project?

There were already a few hydro schemes in the area including the Tummel hydro-electric power scheme which generates a total of 245 MW from five stations. The natural advantages of the estate helped determine the type and scale of the scheme. Given the large catchment area and very good burns, the Barclays were able to consider a mini "run of river" scheme where excess water from two rivers on the Innerhadden estate is siphoned off before being transported through 6.5km of underground pipe to a buried power plant. The water falls 310m to drive a turbine, with the 1.4 megawatts of energy produced (enough to supply about 1,000 houses nearby) being fed into the national grid.

Researching the idea

Over a period of two years, Richard and a consultant undertook detailed research from talking to people in the industry to carrying out comprehensive environmental studies. As the project was over 1 megawatt, an Environment Statement had to be prepared for the Scottish Government (if less than a megawatt, the local authority can deal with the case). Water levels and fish and animal habitat impacts needed to be assessed as part of the Environment Statement. Another key element was to discuss the proposal with Scottish and Southern Energy in order to establish the link to the grid. Fortunately the lines to the estate were capable of carrying the electricity and they were able to reserve the capacity. The cost of having to upgrade lines can have a major effect on project viability. Funding The Innerhadden estate scheme cost in the region of £1.6 million and was funded by the estate as no grants were available at the time. For more information on funding options now available, see SAC's Renewable Energy - hydro guide

Business Establishment

Having reserved line capacity to the grid and prepared the Environment Statement, the consultation phase began. The consultation process took well over a year even though there were no significant objections to the proposal. Richard suggests that the process was protracted in this case due to the new Water Framework Directive and believes that the SEPA have now improved this process. Following successful consultation and having gained the necessary approvals, the physical work began. Construction took about 18 months.

Problems encountered

No significant problems were encountered however the process was a long one – approximately four years from initiation to the production of electricity, and there were significant costs involved. Where the business is now The Innerhadden estate hydro scheme is now supplying 1.4mw to the national grid. The estate has entered into an agreement with Marks and Spencer to supply renewable energy exclusively to Marks and Spencer through the grid.

Critical Success Factors

Having a suitable site and carefully researching the viability of the project and the environmental impacts helped to ensure the success of the project and meet the objective of maintaining the estate and secure its future within the family.

Contacts

For further information, contact Richard on 01796 472194 or email richard@rannochsmokery.co.uk.