The Local Energy Challenge Fund is open for applications

The second round of the Scottish Government’s Local Energy Challenge Fund was launched on 17th March 2015.  The Challenge Fund is part of the Scottish Government’s flagship Community and Renewable Energy Scheme (CARES) delivered by Local Energy Scotland.  Round 2 of the fund is being developed in partnership with the Low Carbon Infrastructure Transition Programme.

The Local Energy Challenge Fund is available to commercial businesses, manufacturers, universities, housing associations, local authorities and community groups in order to support large-scale local low carbon demonstrator projects which show a local energy economy approach linking local energy generation to local energy use.   This could include projects looking to develop innovative distribution and storage solutions, with an overall aim to create more local value and benefit.  In fact the Fund is available to anyone who fits the project criteria see The first round of the Local Energy Challenge Fund was highly competitive, with 114 applications being submitted and 17 projects being awarded the phase 1 support. Over £20m has been awarded to the successful phase 2 projects.  You can find out about all projects that were supported in Round 1, including those that won capital support, on our  website.

The Local Energy Challenge Fund is a two phase scheme.

  •  Phase 1 Project Development and Feasibility Applications
    • Simple application process mainly focused around you setting out the vision and direction of your project.
    • Support of up to £25,000 to successful applicants to develop project proposal
    • 20-30 projects awarded funding
    • deadline for completed applications is 25th May 2015
  • Phase 2 Capital and Implementation Applications
    • Only successful phase 1 projects can apply for Phase 2 Capital and Implementation funding. 
    • Scottish Government aim to continue the ambitious scale of the current Phase 2 capital fund in this second round, supporting large scale step change local energy projects.
    • Phase 2 capital spend over two years between April 2016 and March 2018.

Phase 1 application form, guidance notes and FAQs are available via

If you have any queries regarding the fund or the application process, please email .


Up to £25,000 available to develop phase 1 projects