This study examines the deployment of small-scale hydroelectric power enterprises (1,000 kW or less), operated for more than 40 years by a farmers’ organization or a town office in the Chugoku region, since the introduction of a feed-in tariff (FIT) scheme. A survey of the operating organizations in Okayama Prefecture revealed that the FIT introduction enabled the renewal of outdated and inefficient facilities. The results indicated it was not whether the small hydropower enterprises were operated by local community but profitability that allowed the operating organizations to maintain them. However, small hydropower installations have become widespread recently in the service of public interest—for example, to secure power in readiness for disaster or to revitalize rural area. Therefore, sustainable small hydropower management must also devote equal attention to economic and social considerations to become fully efficient and community-centric.
