According to the Minister, the fund will help to "reshape how energy is delivered and used" in communities throughout Scotland.
Through the Community and Renewable Energy Scheme, (CARES) Local Energy Challenge Fund, businesses, community groups, charities, local authorities, housing associations, and universities can apple to establish low-carbon energy pilot projects in their areas.
Applications for such projects can be submitted from today (18 August).
Minister Salmond said: "Today, my cabinet colleagues and I will undertake a series of visits in Arbroath, seeing first hand some of the great success stories of the Scottish economy.
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"This visit to Arbroath will not only reflect on the success of the local area, it will also highlight strengths we have across our economy and across Scotland. Industries like tourism, food and drink, construction are all areas where we have real strengths that will help drive our economy after we have secured independence.
"The new local energy challenge fund is a prime example of that. It is an opportunity to build on Scotland's outstanding strength in renewable and low carbon energy and to reshape how energy is delivered and used in communities throughout the country.
"Scotland is already leading the way in the UK, helping communities to own and benefit from their own energy projects. By giving people a stake in heat and electricity generating technologies, we can address climate change through low carbon projects, and also tackle fuel poverty."
He added: "I am confident this fund will help facilitate some of the country's most innovative and exciting energy projects, and it cements our position as a global leader in renewables and low carbon development."
The new fund also coincides with the launch of the Community Energy Policy Statement (CEPS), which outlines the Scottish Government's support for community energy as well as new ambition for holistic local energy solutions. Members of the public and other interested parties will be asked for their views on the statement during a 12-week consultation period.
(JP/IT)
