The 5 Megawatt (MW) development at Loch Eilde Mor, near Kinlochleven, is expected to generate enough renewable energy to power around 2,400 homes and create around 12 jobs during construction.
The SG has also approved a refurbishment of the existing Innerhadden hydro-scheme near Kinloch Rannoch in Perth and Kinross which will see the installation of two new weirs with self cleaning screens. Its expected capacity of 1.4 MW.
Energy Minister Fergus Ewing said: "I have carefully considered the application for development at Loch Eilde Mor and this is a good scheme which will provide a new green energy source and sustainable economic benefits - an excellent example of using our natural assets in harmony with the environment.
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"The Scottish Government's target is to meet the equivalent of 100 per cent of electricity demand from renewables by 2020, and every new hydro-scheme is another step towards realising that goal.
"I have also consented a refurbishment of the Innerhadden hydro-scheme in Perth and Kinross, which although already generating renewable energy, will enable it to maximise its output."
The SG's target is to meet the equivalent of 100 per cent of electricity demand from renewables by 2020. In 2009, 27 per cent of electricity demand came from renewables. There is around 7 Gigawatts (GW) of renewables capacity installed, under construction or consented around Scotland, which will take Scotland beyond the interim target of 31 per cent of Scotland's electricity demand from renewables by 2011.
The SG has determined 52 energy applications, including approval for 43 new renewable and three non-renewable projects since May 2007. Another 33 applications (24 onshore wind, four hydro and five thermal) are currently being processed.
(BMcN/GK)
