- State Aid Information
- Case Studies and Inspiration
Capital demonstration projects
- Round 1 - 2015
- Round 2 - 2016
- Phase 2 info
Development Projects 2015
- Montrose Local Energy Project
- Algal Solutions for Local Energy Economy
- Blackwood grey fleet to green fleet
- H3 - Hillfoots Heat and Hydropower
- Clyde Gateway Community Renewable Energy Initiative
- Community Energy Supply for Urban Areas (CESURA)
- Outer Hebrides Local Energy Hub (OHLEH)
- Wellpark (Glasgow) – Community Heat and Power Project
- Energise Galashiels
- Fintry Development Trust Smart Meter Commercialisation
- Glasgow’s Infrared Heat Demonstration Project
- Large Scale ASHP District Heating Exemplar
- Linlithgow Energy Corridor - “Heat from the Street”
- River Tay Heat Pump District Heating
- Ensuring Future Energy Security for Knoydart
- Heat Smart Orkney
- Green Gas Grids
- Wind to Agri-Energy
- Energy Bridge
- Pairc Niseaboist Community Energy Project
- ACTION Highland Highway
- Caol District Heating Scheme
Development projects 2014
- ACCESS- Assisting Communities to Connect to Electric Sustainable Sources
- Caol District Heating Scheme
- Community Microgrid Accelerator
- Demonstration of localised grid balancing
- Energyzing Insch
- Levenmouth Community Energy Project
- Local Power, Local Benefit
- Machrihanish renewables supply micro grid
- Orkney distribution grid-smart demand side management commercial scale deployment trial
- Orkney ‘surf and turf’ renewables integration, hydrogen production and marine vessel supply
- River source heat pump district heat network scheme
- Shetland Island Council demand side management thermal storage project
- Sunamp fuel poverty reduction project
- Sustainable Cupar renewable energy ESCO (SCREE)
- The application of large scale open water source heat pumps and heat store within existing district heating systems
- The conversion of curtailed energy on Eday to hydrogen for the benefit of the local community
- Using virtual power plants to integrate renewable energy resources and demand in remote communities
- Frequently Asked Questions
- Information event presentations
- Other Funding Options
- The Challenge Fund Blog
Frequently Asked Questions
Please see questions below and email us if you have any queries you would like answered.
- What are the maximum and minimum funding levels?
- Do we need to have partnerships established for Phase 1?
- Do we need to have feasibility work complete?
- Do I just have to register an interest by the 25th of May?
- Does my hard copy Phase 1 application have to be received by post before 25th of May?
- Can an organisation apply for more than 1 project?
- Can you confirm if the fund is just for renewables projects as in some places it says supporting the Government’s Renewables targets and other places it just states low carbon?
- Can you confirm if the fund has to involve a local community at its core?
- Is gas CHP eligible for funding?
- Can Universities use a different State Aid declaration if they are not subject to de minimis?
- Can we include any appendices with the application, for example a process diagram that illustrates how a prospective Phase 1 or Phase 2 might come together or an extract from a feasibility study?
- We expect to receive funding from another grant fund (e.g. Coastal Communities Fund). Is this an issue when it comes to match-funding this project from two different grant funds?
- When will the Phase 2 application form be available?
- I received Phase 1 feasibility support in the Round 1 Local Energy Challenge Fund 2014/15, do I need to re-apply?
- Can the NHS be a project partner?
- Can Scottish Enterprise be a project partner?
- Can project partners be based outside Scotland?
- If phase 2 funding is confirmed by the Scottish Government what is the level of funding that you expect to award to each project?
- Who is on the decision-making panel?
Phase 1 can provide funds of up to £25,000. If no funding is required, Phase 1 can provide soft support through advice. Projects will not be considered for Phase 2 unless they have been successfully approved for Phase 1.
No, and you can also use Phase 1 funding to help establish these if your project is successful. (See “Section C” of Challenge Fund Guidelines)
Your project needs to be clear enough so the panel can understand your vision and your ability to achieve the vision, but we expect feasibility work will be progressed as part of your Phase 1 work.
No, you need to fully complete a Phase 1 application form by the 25th of May. This will allow the panel to understand your project proposal and assess whether it should be progressed to a full Challenge Fund Application (Phase 2). (The Phase 1 application form can be downloaded here)
Only shortlisted Phase 1 projects can be progressed and these will receive handholding and funding to help them develop applications for the Phase 2 application deadline in February 2016.
Information on how to apply can be found here.
No - you must submit an electronic copy to firstname.lastname@example.org by 16:00 on the 25th May. A hard copy must be sent in the post and can be received shortly after this date.
Yes, for Phase 1 applications.
It doesn’t have to involve renewables but it must be working towards local energy economy. (See “Objectives” on page 9 of the Challenge Fund Guidelines)
The fund is open to a wide range of applicants as listed in the guidance notes. (See “Who can apply for Phase 1 development funding?” on page 11 of the Challenge Fund Guidelines)
Phase 2 applications need to include at least two partners and the guidance does not stipulate that this needs to be a local community. However, the Scottish Government think applications will be strengthened where it’s clear there will be community input and ownership.
It would be eligible for funding. Applicants will be appraised on the demonstration quality of their project and how these would meet the Scottish Government’s vision for a Local Energy Economy as outlined in the Community Energy Policy Statement. (See http://www.scotland.gov.uk/Publications/2014/08/1223)
State Aid tests are applied to the project and not the organisation. Local Energy Scotland has provided an additional De Minimis declaration within the application form to allow applicants to state that they do not believe their project should be subject to State Aid and to confirm they have applied the four state aid tests to the project. As well as our own State Aid guidance, there is helpful information on the Scottish Government website.
There is a section within the application form that allows existing feasibility studies or evidence you want to reference to be summarised. At phase 1 the panel will only review your application form and not any supporting information so its important to capture details within the application form. We may contact applicants if further information is needed to complete the assessment of the Phase 1 application.
If both schemes class as State Aid (as this one does), funding can only be matched up the maximum aid intensity with the specific State Aid General Block Exemption that is being applied. Even if the other grant fund is delivered under a different State Aid exemption to the Challenge Fund, you will not be able to use the same eligible costs for both funds.
What this means is that you cannot double fund the project using the same base costs. What you can do is to apply for one part of your project costs under the other grant fund (e.g. building repairs), and for funding to cover a different part of your project under the Challenge Fund (e.g. a biomass boiler) without any issues so long as you clearly identify the separate eligible costs.
The Phase 2 application form and annex templates will be made available to all successful Phase 1 applicants. As covered in the guidance, you must be accepted into Phase 1 in order to apply for Phase 2.
The Phase 2 application requires detailed information about your project and includes templates for:
- Detailed workplan
- Risk assessment
- Detailed project budget
- State Aid intensity calculation
You will be expected to provide technical specifications for the equipment you plan to install, proof of competitive tender processes for any goods over £10,000, and a calculation of fuel displacement and GHG emissions savings.
Yes. To be considered for any eventual Phase 2 of the current Local Energy Challenge Fund, projects must have successfully applied for and received Round 2 feasibility support, open to applications until 25 May 2015.
Yes, the NHS can be a project partner in Local Energy Challenge Fund projects.
No, Scottish Enterprise (and other Scottish Government bodies) cannot be partners in Local Energy Challenge Fund projects. They may offer projects support through normal activities and may provide projects with a letter of support to confirm this.
Yes, project partners can be based outside Scotland, but the lead applicant must be registered in the UK and based in Scotland.
We hope to be in a position to be able to award funds of between £500,000 and £6m per project in phase 2 of the scheme.
You can download a list of the organisations represented on the Local Energy Challenge Fund external funding panel here.