Spotlight on a company

leading the field in small-

scale renewable energy.

MORE than 100 years ago, many remote houses in Scotland had nothing

but candlelight to brighten the dark nights. So some large farms and

estates began installing small hydro-power generation plants to produce

electricity.

These plants involved the latest technology of the day and proved

invaluable in providing energy to more remote areas.

Today, Edinburgh Hydro Systems (EHS) is adapting and updating that

ancient but reliable technology to develop highly efficient and

successful hydro schemes all over the world.

Unlike many companies in the renewables sector, EHS develops projects

from conception to completion and provides clients and communities with

hydro schemes which are highly effective, in terms of both cost and the

environment.

Set up in 1988 by Simon Grey and Niall Wright, two enterprising

engineers who saw there was an increasing demand for small renewable

energy schemes, the company now has eight more experts. To date it has

designed and built six schemes in Scotland and undertaken many design

and feasibility studies for projects throughout the UK.

EHS has adopted a policy of offering the highest-quality service

combined with the latest technology, and has never settled for anything

less.

Says commercial director Niall Wright: ''We have spent many years

examining the market for small hydro power schemes and have applied our

practical business solutions to make projects commercial and to boost

the amount of renewable energy generated in Scotland. We feel it is this

solid groundwork and innovative approach that have contributed to our

success.''

At a time when many small English and Welsh hydro-development schemes

have failed, despite Government subsidies, EHS has been responsible for

successfully re-establishing a thriving small hydro industry in

Scotland.

The success of EHS is its pragmatic approach to developments and its

application of appropriate technology.

Simon Grey, EHS technical director, explains: ''In many ways we

consider ourselves to be a unique company in that we are not merely an

engineering consultancy, nor are we purely project managers. We use the

latest technology in developing renewable schemes and provide in-house

all the other services associated with these developments.''

Project developments are initiated by identifying a possible site and

assessing the economic and environmental potential. Design work and

surveying are then undertaken, planning permission sought, and this is

followed by construction, grid connection, and finally round-the-clock

operation and maintenance.

Project finance, energy sales contracts, and advice on all aspects of

renewable power can also be organised and it is this comprehensive

approach to small-scale renewable energy that the company believes has

boosted its position as the No. 1 small hydro development company.

Renewable energy is playing an increasingly important part in the

nation's energy requirements as the ''environmentally-friendly'' method

of power generation. EHS foresaw this and has developed its business

accordingly.

Initially many projects involved upgrading or redeveloping old hydro

schemes for landowners from the Highlands to the Borders. Most of these

schemes originally produced enough electricity for the estate alone, but

with EHS's redevelopment, landowners are reaping the financial benefits

of selling the excess electricity to the national grid.

The operation and maintenance of a number of small hydro schemes

spread across the length and breadth of the country provided the company

with an interesting geographical problem.

EHS's solution of linking each scheme to a central office computer via

BT's telephone network enables a means of 24-hour remote control. This

ability to apply modern techniques to a 100-year-old technology has

helped the company to compete within the recently privatised energy

marketplace.

''Hydro schemes are one of the most cost-effective and environmentally

sound methods of small-scale power generation available today,'' says

Simon Grey.

Back in 1988, EHS examined the market carefully and saw that renewable

power would expand, but that the expansion could be slow. It then took

the decision gradually to build up its expertise and consolidate its

position.

This consolidation involved searching for reliable and lasting project

finance and selecting the best engineers available in this field to join

the young company. When the first Scottish Renewables Order (SRO)

subsidy scheme was announced by the Scottish Office in late 1992, EHS

was in the perfect position to capitalise on all its groundwork.

Under the SRO, Scottish Power and Hydro-Electric are required to

obtain a certain amount of generating capacity from renewable energy

sources. Renewable energy schemes can bid for contracts to produce a set

amount of power at a guaranteed fixed price.

The year 1994 looks like being an active one for the company. Not only

is it submitting several schemes for the SRO contracts but it is also

pursuing opportunities as far afield as India and the Far East.

It has also recently been evaluating hydro projects on the River Trent

and other large rivers in England.