THE latest developments at Hargreaves Resources highlight faith in the potential of renewable energy projects in Scotland on the part of powerful players. They also underline the challenges involved in developing such assets.

Hargreaves has won support from the Green Investment Bank for plans to develop a big energy from waste plant at Grangemouth soon after the funder was bought by Australian giant Macquarie. It has recruited Alex Lambie, who built Welsh Power into a £1bn business, to develop the energy projects it is spinning off into a new subsidiary, Brockwell.

The projects include plans to develop wind farms on former open cast mine sites in South Lanarkshire. Mr Lambie believes the projects in Scotland could provide the foundations of a big business.

However, Hargreaves founded Brockwell at least partly to simplify the group and limit the demands on its capital.

Developing wind farms and the like takes time. It can tie up lots of capital while markets evolve in ways that may not be helpful.

In August, Hargreaves said its key wind farm sites benefited from high wind speeds but market conditions and prices did not then allow their commercial development.