The Scottish Government will put £103 million in investments in renewable energy generation through the Renewable Energy Investment Fund.

The fund will initially support communities and rural businesses in developing their own renewable energy projects. Later, it will go to district heating projects and wave and tidal developers deploying projects in Scotland.

The fund is said to complement funding from the Green Investment Bank. While the latter focuses on projects that are nearer to commercialization, the investment fund announced will be used to support projects in early stages of development.

"This £103 million Renewable Energy Investment Fund will allow communities all over Scotland to reap the benefits of our green energy revolution," said energy minister Fergus Ewing.

Meanwhile, Mr. Ewing announced a further £2 million support for community renewables for 2012 to 2013, for the government's Community and Renewable Energy Scheme or "Cares" loan fund that was announced February last year.

The Cares loan fund provides loans of up to £150,000 to cover the pre-planning consent stages of renewable energy projects up to 5 megawatts, as long as these projects will benefit local communities.

The Scottish Government has committed to spend £200 million over the next three years to support renewables and renewables infrastructure development to meet its energy mix targets and emission reduction goals.

Scotland seeks to generate the equivalent of 100 percent of their gross annual electricity consumption from renewables by 2020, with an interim target of a 42 percent cut in emissions by 2020.