Farmers could receive extra income if they take part in a new scheme that would see electricity generating wind turbines built on their land.

The scheme was launched on Tuesday by the energy minister, Brian Wilson, as he visited a wind farm near Newquay, Cornwall.

Under the new initiative farmers and landowners would be helped to apply for the building of up to three turbines on their land. The government is endorsing the "WindWorks" scheme led by energy company National Wind Power.

The small-scale wind farms would depend on the farmer being able to gain local backing for building the turbines. NWP would then put up financial backing and would reach an agreement with the farmer over how to share profits from the electricity that would be generated.

NWP would be responsible for building and maintaining the installation, and for arranging connection to the National Grid. Each project will last about 20 years and at the end of its life NWP will be responsible for its decommissioning and the reinstatement of the site.

The plan could result in farmers doubling their annual incomes, which were estimated last year to average around £4000.

Each turbine would be able to generate electricity for about 1000 homes and offset approximately 4000 tonnes of carbon dioxide gas emissions. The government hopes the scheme will help it meet its target of having 10 per cent of electricity generated by renewable sources by 2010.

Currently three per cent of total electricity produced comes from renewable sources, with just a tenth of that coming from wind turbines.

Wilson said the scheme would interest farmers looking for another revenue source while contributing to the drive for green energy.

"The government has already put its full weight behind renewables helping to create a £1 billion market for green energy by 2010. But if wind energy is to reach its full potential then it is important that industry comes forward with innovative schemes such as this which not only help themselves but also help to reduce green house gases," he said.

NWP said the WindWorks package had been developed to provide farmers with financial rewards while avoiding exposure of farmers and landowners to new financial risks at a time when great uncertainty exists in the farming industry and the rural economy as the impact of the foot and mouth outbreak continues to hit businesses.

The government has looked to Denmark as a model for renewable energy production. Fifteen per cent of electricity in Denmark comes from renewable sources, with a large proportion of this coming from schemes similar to that being announced by the government and NWP.

Alan Moore, managing director of NWP, said: "The WindWorks service enables farmers to benefit from a sustainable, environment-friendly income provided by wind energy projects. It is bringing to the UK a formula that has for years been successfully implemented in Denmark - the world's leaders in wind energy.

"If we can replicate the success that small wind projects have had in Denmark and elsewhere, it will greatly help in meeting the UK's renewables targets. WindWorks will help unlock the potential of small wind projects in a financially attractive, cost-effective and risk-averse way," said Moore.

The Countryside Agency also said it would back the scheme if it was "sensitive to the character of the countryside".

"We see it as an important development in the wind energy industry, and welcome its potential contribution to farm diversification options," said the agency.

The National Farmers Union also said the announcement could prove "helpful" to farmers and said there could be a lot in interest amongst farmers looking to improve their income.

Britain is Europe's windiest country and currently has around 880 operating wind turbines on 61 sites around the country. They produce enough electricity to supply over 260,000 homes.

Wind farms are also being developed off-shore. The first such wind farm, off the coast of Blyth, Northumberland, saw its first turbines installed in October 2000.