More than 1000 commercially viable new hydro-electric schemes could be developed in Scotland in the coming years according to Scottish Government advisers.

More than 1000 commercially viable new hydro-electric schemes could be developed in Scotland in the coming years according to Scottish Government advisers.

The huge untapped potential of Scotland's hydro-power is revealed in a new report published today which ministers are convinced could herald a fresh dawn for the industry.

The report argues that a further 657 megawatts of power could still be available through hydro-generation, more than six times the capacity of the £150m Glendoe scheme nearing completion above Loch Ness.

But most of the 1000-plus potential schemes would be medium or small, without the need for the massive investment required by the large-scale schemes of the past .

First Minister Alex Salmond was at Glendoe yesterday to plug the dam which will lead to the creation of a huge new reservoir. He emphasised his personal commitment to the industry which he said was going to grow in importance. He declared: "Hydro is back."

Nick Forrest Associates has undertaken the survey of Scotland's hydro potential on behalf of the Scottish Government. A model was used which identifies all financially viable sites within a river catchment.

Mr Forrest told The Herald yesterday: "This 657 megawatts does not include existing sites - it is additional hydro potential.

It is modelled using values typical for a commercial investor, paying back in 15 years. If you were to relax these standards then the potential would be even greater."

He said this work was based on establishing smaller river and storage schemes and not those involving the highly expensive diverting of river catchments such as in the Glendoe scheme.

"The 657 megawatts is the baseline scenario but we also look at how it might vary according to different factors such changing environmental legislation and market prices.

"We also highlight that while this may appeal as a sound commercial investment to some developers it will be the more so for farmers and landowners and people who are doing it for environmental reasons or because they have a high demand that they want to offset. There is real potential for them in the smaller schemes."

He added that there was scope for several smaller schemes to be brought together to form a larger project.