From June 2011 new applications up to 50 Megawatts (MW) will be determined by councils rather than Ministers.
Currently, hydro schemes over 1 MW are decided by Ministers and the changes will bring hydro into line with the thresholds for determining wind farms.
Energy Minister Jim Mather said: "Scotland has a long tradition of hydro development and today's vibrant sector is putting forward plans for new, mainly small scale schemes all the time.
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"At the moment planning authorities already consider hydro applications, sometimes at committee, before responding to Ministers. Rather than making a recommendation, councils will now apply local knowledge to make local decisions on hydro applications up to 50 MW, cutting out another layer of bureaucracy. Developers have welcomed these changes to simplify and streamline the process.
"Our tough target to determine energy applications within nine months has made a noticeable difference to the speed of decision making. While every application has its own characteristics, planning authorities are experienced in hydro schemes and I expect developers will now get even quicker decisions and be able to contribute further to Scotland's low carbon economy."
(GK)
