The acquisition is the company’s second purchase of a hydro site, which will generate 2MW for export into the electricity distribution network, from utility SSE.

Construction on the AlltCoireChaorach project is slated tocommence in 2014 and aims to generate electricity in spring 2016.

The deal follows the acquisition of 2MW Allt a’ Chonais scheme near Achnasheen by Green Highland Renewablesin October 2013from SSE.

The 2MW Allt a’ Chonais is scheduled to be commissioned later in 2014.

Green Highland Renewables managing directorIan Cartwright said: "This is another landmark deal for Green Highland Renewables and underlines our reputation for delivering quality hydro schemes across Scotland.

"We agreed with SSE that the AlltCoireChaorach project plays to our strengths and fits our core strategy to expand our portfolio of schemes.

"We’ve now completed seven projects, have eight under construction and have a 100 per cent track record in securing consents, with 45 projects approved to date.

"We are still hungry for new sites and are actively seeking opportunities to grow our development portfolio in order to deliver more schemes across Scotland."