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There was an unprecedented growth of SHP (small hydropower) in Japan during recent years because the government has provided a high FIT (USD 0.32/kWh) for SHP development projects of less than 200 kW. The public and private sectors are committed to harnessing this natural energy to achieve the renewable energy goal as well as to improve local communities social and economic conditions. This paper will discuss about renewable energy initiatives by a food corporation enterprise (FCOOP) based in Fukuoka prefecture of Japan to reduce their net carbon emissions. A detailed approach for social enterprises-based SHP development has been discussed which will be a role model concept for other social enterprises in Japan and in the world that are willing to reduce CO2 emissions. Also, this kind of project connects urban stake holders with local community where resources are available and it leads to development of the local community living standards. As a demonstrated example, a case study of a 20 kW SHP installed in Japan by a FCOOP has been discussed.

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 CO2 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.