Announced on 19 June, construction of the Glen Noe Hydro Scheme began in May following original consent from Argyll & Bute Council in September 2016.
The 2MW run-of-river hydro scheme is located near Loch Etive in the west of Scotland. It is expected that the renewable scheme will be able to power more than 1,400 average consuming homes each year.
Completed construction of the project is expected by the end of 2020.
Hydro UK Development & Projects Manager Duncan Morrison said: “We are pleased that the construction of Glen Noe is underway and I’m delighted to announce that innogy will be making a community fund of £2,000 per year, available for up to 40 years”.