State aid information

The Local Energy Challenge Fund was launched by the Scottish Government to support a transition to a different approach to energy generation and consumption. The Local Energy Challenge Fund will provide grant and loan funding for major demonstration projects providing transformative and innovative local energy solutions. The Local Energy Challenge Fund will operate in two phases; the Development Phase and the Demonstration Phase.

This scheme has been notified to the European Commission under its General Block Exemption Regulation (Commission Regulation {EU} No 651/2014), to ensure compliance with EU rules on State Aid. The scheme number is SA.44639. 



Development Phase - De minimis State Aid funding information

Development phase funding will be available from 13th July 2015 to 22 February 2016 to help support the development of potential projects to the main Local Energy Challenge Fund. Development phase funding will be delivered via de minimis funding. The de minimis exemption permits aid of up to €200,000 to an individual recipient (from all sources) in any rolling three-year fiscal period. If you are receiving any other de minimis aid from another source, you must declare this as part of your application in Section 4.

As the applicant, it is your responsibility to ensure that any award that may be provided does not breach the €200,000 ceiling.

The State Aid de minimus ceiling is expressed in Euros. This can be equated to Pounds Sterling by using the rates shown on the EU website here.

Further information on de minimis State Aid for development support is available to download here.


Demonstration Phase - State Aid Block Exemptions

Demonstration Phase grants can be used to cover reasonable and justified costs of activities which contribute towards the project outcomes.

The Demonstration Phase of the Local Energy Challenge Fund will be delivered using a combination of State Aid General Block Exemption Regulations (GBERs). This is in order to maximise the amount of funding that can be used to support worthy projects, and provide a high level of flexibility for applicants to design projects that meet some of the existing challenges in the Local Energy Economy. 

Further information on General Block Exemption Regulations for the Demonstration Phase is available to download here.