A £4.6 MILLION project to build wind turbines in Fife will also provide new boilers for 200 Ore Valley Housing Association homes.

It follows an agreement with the Cardenden-based association, the European Energy Efficiency Fund and Scottish Government.

Work is already underway at Dundonald and Ore Valley's chief executive, Andrew Saunders, said: “This project is a good example of a collaborative and innovative approach to address both fuel poverty and make an active contribution to increase the share of renewable energy in the overall electricity mix in Scotland, whilst providing a continuing financial benefit to the local community.”

The money will fund the development of onshore wind turbines in Fife, plus an innovative scheme to replace 200 heating systems for the association's homes.

It's the European Energy Efficiency Fund's first community-based transaction in the UK and is the result of four years of co-operation with Ore Valley, which is based in Cardenden and provides 650 homes for rent in Central Fife.

The European funding group will provide money, along with Cardenden Heat and Power – a subsidiary of Ore Valley – and the Renewable Energy Investment Fund, which is delivered by Scottish Investment Bank on behalf of the Scottish Government.

The on-shore wind turbines will be provided by Enercon.

Construction work on three turbines is already underway at the Dundonald site and they should be up and running by March 2017.

Ofgem will provide guaranteed funding –feed in tariff – for 20 years and the renewable energy produced by the turbines will also be sold back to the National Grid.

Paul Wheelhouse, Scottish minister for Business, Innovation and Energy, said: “This £4.6 million project will enable the development, construction and operation of onshore wind turbines in Fife.

"It is an excellent example of joint working between community organisations in the local area, the European Energy Efficiency Fund and the Scottish Government, which will provide funds through our Renewable Energy Investment Fund.

"I am delighted this project further contributes to that vision and I am also pleased to see it delivering boiler replacements for 200 local households.”

Ore Valley began in 1991 when a group of residents in Cardenden formed a voluntary committee, called Auchterderran Housing Association, to secure the transfer of housing stock from Scottish Homes and improve their community.

They achieved the transfer of 342 properties by 1997 and two years later changed the name to Ore Valley Housing Association.