The hydropower industry is at a "crossroads" with future projects threatened by a cut in UK subsidies, Scotland's Energy Minister has said.
Paul Wheelhouse has called on the UK Government to "work closely" with him to secure funding and jobs in rural areas.
He was speaking as he visited a pumped hydro storage plant at Foyers, near Loch Ness, which can store electricity at times when renewable energy output is high but demand is low.
Mr Wheelhouse said: "Hydro generation in 2015 was at a record high level - 5,780 GWh, up 6.3% on 2014.
"But the hydro sector is at a crossroads with a number of exciting developments opening, but with some future investments, especially in small-scale hydro, at risk due to changes in subsidies brought in by the UK Government, putting jobs at risk in many rural communities.
"Pumped hydro storage - like the facility I have seen today in Foyers - is a case in point. This tried and tested technology can play a key role in enhancing energy security, providing local jobs and helping to integrate renewables on to the network.
"As well as being able to further support peak demand, expanded pumped hydro storage would also be able to effectively store greater levels of electricity at times when renewable energy output is high but demand is low.
"However, this part of the hydropower industry requires substantial Government support - not the kind of extra hurdles that changes in subsidies from the UK Government have put in place. That is why I am using this visit to urge the UK Government to do all that it can to support the real and continued potential in this energy resource."
Hannah Smith, policy officer at Scottish Renewables, said: "Research last year showed 204 smaller hydro plants were now up and running across Scotland, providing clean power to homes, businesses and community organisations.
"Cuts to UK Government support in recent years remain a matter of real concern for our members, and are likely to mean a sharp downturn in deployment in the next 12 months.
"However the potential for hydropower and pumped storage hydro in Scotland remains strong, and we are working with the Scottish and UK governments to seek clarity over the support this valuable technology can expect to receive in future."
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