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Community-Based Business on Small Hydropower (SHP) in Rural Japan: A Case Study on a Community Owned SHP Model of Ohito Agricultural Cooperative

Author

Listed:
  • Zafar Alam

    (Nakayama Iron Works Co. Ltd., Saga 843-0001, Japan)

  • Yoshinobu Watanabe

    (Nakayama Iron Works Co. Ltd., Saga 843-0001, Japan)

  • Shazia Hanif

    (Department of Agricultural Engineering, Muhammad Nawaz Sharif University of Agriculture, Multan 66000, Pakistan)

  • Tatsuro Sato

    (Faculty of Architecture and Civil Engineering, Kyushu Sangyo University, Fukuoka 813-8503, Japan)

  • Tokihiko Fujimoto

    (School of Political Science and Economics, Meiji University, Tokyo 101-8301, Japan)

Abstract

Energy is the prerequisite for social and economic development of a community and country. In Japan, national government is promoting small hydropower (SHP) through a renewable energy policy by providing a high FIT price of 34 yen (≒0.32 US$/kWh) on energy generated from an SHP of less than 200 kW. Until now, the energy generation was controlled by national government agencies, but now independent power generation businesses are growing at the local community level in rural Japan. For the future growth of SHP, it is necessary to make electricity generation at the local community level. Therefore, these local communities will install and manage their renewable electricity by themselves. It will help to make the community self-sustainable and independent from the national government, and at the same time, it will also lead them to achieve the Sustainable Developments Goals (SDGs) target from community-based action. This paper aimed to discuss an SHP development business model in which local community will become the business owner of the SHP. It means “of the community, by the community and for the community”. The community identifies their renewable energy potential and needs, they borrow money from the financial organization or banks, install the power plant and do necessary maintenance and management by themselves. The revenue earned by selling electricity is used to repay the loan, and the rest is used for community development directly (such as local roads construction, agriculture land improvements, community hall maintenance, waterways maintenance, welfare, etc.). This paper also discussed a community-based 50 kW SHP installed in Miyazaki prefecture of Japan as a case study. This SHP is one of the best examples of a community ownership model (Community-based business model). A detailed explanation from planning to investment has been discussed. The local community is getting approximately 112,000 USD per year by selling the electricity, and 162-ton CO 2 is estimated to decrease yearly, which will support the achievement of SDGs. Finally, installing this kind of SHP in remote areas will provide managerial skills to the local community directly, plant operation knowledge, and education to local students. Local communities learn the problem-solving skills, which lead them to solve the local problem on a community level by themselves.

Suggested Citation

  • Zafar Alam & Yoshinobu Watanabe & Shazia Hanif & Tatsuro Sato & Tokihiko Fujimoto, 2021. "Community-Based Business on Small Hydropower (SHP) in Rural Japan: A Case Study on a Community Owned SHP Model of Ohito Agricultural Cooperative," Energies, MDPI, vol. 14(11), pages 1-14, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:11:p:3349-:d:570369
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    References listed on IDEAS

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    Cited by:

    1. John Cimbala & Bryan Lewis, 2022. "Advancements in Hydropower Design and Operation for Present and Future Electrical Demand," Energies, MDPI, vol. 15(7), pages 1-2, March.
    2. Zafar Alam & Yoshinobu Watanabe & Shazia Hanif & Tatsuro Sato & Tokihiko Fujimoto, 2021. "Social Enterprise in Small Hydropower (SHP) Owned by a Limited Liability Partnership (LLP) between a Food Cooperative and a Social Venture Company; a Case Study of the 20 kW Shiraito (Step3) SHP in It," Energies, MDPI, vol. 14(20), pages 1-10, October.

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