Renewable sources of energy currently supply just 1% of energy consumption in the United Kingdom (ENDS, 1998. The Ends Report No. 277, Environmental Data Services Ltd, pp. 43, 44). In this paper two economic appraisal techniques are applied with the aim of evaluating three renewable energy options: a three-turbine wind farm, a small-scale hydro scheme and biomass development — for a remote community in North West Scotland. Many renewable energy resources throughout Europe are concentrated by their nature in such remote areas. A strategy whereby remote communities could develop these resources could bring economic benefits to these areas: however, both financial and environmental cost implications also need to be addressed. An integral aspec...