Community Finance and Local Cooperatives

man6The RESTOR Hydro project develops guidelines on how to establish small and micro hydropower cooperatives, with a community shares ownership.

Cooperatives increase the bankability of restoration projects. One or more sites in a region can be aggregated under an umbrella organisation responsible for assessing the sites’ potential and preparing a viable financial plan for their refurbishment.

Small and micro hydropower cooperatives bring new dynamism to local communities. Community collaboration to produce decentralised energy creates economic vibrancy, increases electricity supply security and improves environmental conditions, resulting in win-win outcomes for the region.

The cooperative business model offers several advantages:

  • stimulating local investment in renewable energy generation;
  • increasing social acceptance of hydropower through local community participation;
  • generating economies of scale and reducing administrative difficulties.

Supporting documents :

  • Business Model : an explanation of the internal mechanisms of the cooperatives, especialy the roles of the various stakeholders : site owners, cooperative members, partner suppliers, end-users, etc…
  • Template for Master Agreement : this is template that can be used to support the Shares Offering Program. It is a support to explain the projects that need funding and invite citizens and companies to invest in it
  • Financial tool : an Excel based too allowing you to assess the profitability of a portfolio of potential sites based on some simplified assumptions