The scheme, located on the Ally A’Chonais close to Loch Carron in the Scottish Highlands, is expected to generate its first electricity in the first quarter of 2015.
It is Albion’s eleventh investment into renewable energy and second into a hydroelectric scheme – a move which the firm said underlined its strategy of expanding into the sector.
Investment director at Albion Ventures Christoph Ruedig said, “This marks our second investment in hydropower and highlights Albion’s continued commitment to the renewables sector.
“Hydropower is the oldest renewable technology and has a strong track record of performance, which will provide attractive long-term returns for our shareholders.
“We are excited about partnering with GHR as we continue to diversify our holdings across a range of renewable energy technologies.
“GHR is one of the leading developers of small-scale hydroelectricity schemes in Scotland, having successfully developed many schemes over the last five years.’
Last year Albion committed £1.3m to support the development of a single 300kW hydropower scheme on the Afon Cadair river in Gwynedd, Wales, in partnership with Welsh based developer Dragon Hydro.
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