Wheelhouse said that Scotland’s hydropower sector was “at a crossroads” due to subsidy cuts at a time when it required “substantial government support”.
During a visit to a hydro storage plant near Loch Ness, he said: “Hydro generation in 2015 was at a record high level, up 6.3 per cent on 2014.
“But the hydro sector is at a crossroads, with a number of exciting developments opening, but with some future investments, especially in small scale hydro, at risk due to changes in subsidies…
“That is why I am using this visit to urge the UK government to do all that is can to support the real and continued potential in this energy resource.”
The UK government announced in December 2015 that feed-in tariff rates would be reduced for electricity generation to existing small-scale wind, hydro and solar projects to 4.39 pence per kWh.
But Wheelhouse said that the cuts created “extra-hurdles” for a technology that is able to support peak demand.
“Expanded pumped hydro storage would also be able to effectively store greater levels of electricity at times when renewable energy output is high but demand is low,” he added.
WWF Scotland director Lang Banks said: “Along with efforts to reduce electricity demand and strengthen interconnectors, increasing our hydro-pumped storage capacity will help make the most of Scotland’s abundant renewables and help deliver a fossil-fuel free power system.”