**2. Community Owned SHP Development Model**

This section explains community development by installing SHP, as a communitybased business by local people.

In this model, the local residents will become business owners, it creates jobs locally, and it motivates young people to work in their hometown. Additionally, it will attract the migrated peoples from urban areas to do business in their hometown again (called U turn). The installation of this kind of project intends to solve local problems by utilization of local resources. It aims to build a better relationship between urban consumers and energy production areas [22].

Step1—The identification of SHP potential, feasibility study of the potential sites must be done by the local government or prefectural government with help from a consultant, developer or NGOs of SHP. There should be consensus building between the local community, local and prefectural government and the developer, consultant or NGOs. The

consultant should explain the benefits of installing this project to the local community by organizing seminars and consensus building meetings. In most of the cases, the local community people wish to install SHP projects, but they have some concerns about project execution, management and investment. Community people need moral support and training for fundraising, management and operation.

Step2—It is about finding low interest rate investors. In Japan, for an individual person, getting a loan from the bank or any finance is difficult. Additionally, the interest rate is quite high. However, if a community corporation needs a loan for communal use, they can get it easily. Moreover, if the corporation or company comprises farmers, then the interest rate is very low due to its social impact. To avail this opportunity, a local cooperatives and community-based business company are made, and the local people become the owner and members of this community-based business association. This new cooperative association gets the loan from the bank or financial institution and becomes the SHP project owner. In the future, this association will pay the loan, do the necessary maintenance, and utilize the revenue for the community development directly. All members of this association will be the owner of the SHP project at the community.

Step3—Community-based business model (community ownership, multistate holders, networking and various responsibilities) represents the network in which cooperative associations collaborate with the stakeholders, construction companies, consultants, mechanical and electrical makers of SHP. Cooperatives comprise individuals with mutual resources to provide input, output, and capital resources to members at a low cost.

Figure 1 represents the business flow for community SHP development projects. This networking strives to provide information and support for sustainable agriculture and community development. It develops mechanisms to monitor, promote public–private partnerships (PPP), improve smallholder agriculture, and reduce agricultural losses. Funding comes from voluntary contribution, development banks, and other local resources.

**Figure 1.** Community-based business model of SHP; stakeholder assigned before and after the project installation (Source: Author).

Figure 2 represents the responsibilities of each stakeholder toward development and execution of the project. It shows the strong initiative and struggle done by the local community for self-sufficiency in energy production. It also encourages the community to manage its available renewable energy resources along with local commons [23].

**Figure 2.** Responsibilities of each stakeholder of the project (Source: Author).

In this kind of SHP development project initiated by the community, it is necessary to utilize the local resources as much as possible. Generally, local civil companies do the civil engineering parts, locally available construction material would be used to make the powerhouse and local labor. This helps to boost the local economy and job opportunities to local people.
