Relationship-building Process between Private Companies and Local Communities in Privately Funded Development of Small-scale Hydropower

Abstract

：Small-scale hydropower is technically capable of generating a stable power supply every day in a year. It uses water streams as renewable sources to generate electricity. Numerous waterflows available in Japan make small-scale hydropower promising to develop in many hilly locations. Thus, some private companies are keen to enter the market to turn small-scale hydropower into profitable projects. However, some barriers arise against external private companies in entering local areas and doing business. This study conducted observations at 5 sites and interviews in 2 locations. The results discover necessary relationship-building processes between private companies and local communities during private companies development of small-scale hydropower projects. Local contributions agreed between local community and investing companies will secure investment returns for the companies, while these measures should also lead to profits for the community. Based on the interviews, corporate profits from selling hydropower-generated electricity are redirected to repair two living infrastructures (damaged agricultural waterways and water facilities) . Besides, private companies have reduced risks greatly in maintaining and managing power generation facilities, giving a sense of security in the region. Then, extremely delicate legal procedures (contracts, agreements, etc.) with business operators have included measures for any intended contributions to local communities.