How to bring water to the mill of small hydropower?

In a sector with strong potential, supported by advantageous purchase prices, some project leaders are still hesitant. However, faced with the investments required to meet installation standards, a simple and civic-minded solution exists: crowdfunding.

The leading source of renewable energy production in France, hydropower is the center of attention. With 19.5% of the installed electricity production share in 2017[1], the sector has benefited from a government stimulus plan since 2009. Translated into a "commitment agreement for the development of sustainable hydroelectricity in line with the restoration of aquatic environments following the Grenelle Environment Forum",this public will sets a framework for bringing existing structures up to environmental standards. The objective is to ensure ecological continuity by installing fish passes, landscape integration and soundproofing. Laudable and necessary, these standards are not without financial consequences for project leaders wishing to develop small-scale hydroelectricity.

Small-scale hydropower has become large-scale

In France, nearly 90% of power plants are small hydroelectric units. Often installed along the river, they are intended for the long term. Water energy was one of the first to be harnessed, dating back to antiquity, through the first mills. Sophisticated over the centuries, many mills have been rehabilitated to produce local, environmentally friendly electricity.

Small power plants and big potential

Studies on French hydroelectric potential show that a 16% increase in electricity production can still be envisaged. Reduced to small hydroelectricity alone (currently 7 Twh of production), this represents a production increase of 5.5 Twh that is envisaged in the coming years. To realize this potential, new installations and renovations require capital that owners don't necessarily have at their disposal. Instead of giving up or selling, citizen investment can be a powerful lever.

Why crowdfunding?

Citizen financing corresponds to new societal expectations regarding the energy transition and the fight against global warming. Consumers' relationship with electricity is changing today with new uses (decentralized production tools, satisfaction in using clean, carbon-free, and, above all, locally produced electricity). The same is true for savings. Citizens today want to direct their investments toward concrete projects that have a strong impact on their local area. By integrating crowdfunding into small hydroelectric power plant projects, citizens are participating in the energy future. Thus, collectively, they contribute to the fundraising necessary for project leaders to ensure that positive energy territories thrive.

[1] 2017 Electricity Report, RTE – Electricity Transmission Network

Cyrille Arnoux, web editorial manager