Japan's New Energy Foundation (NEF) has reopened a public call for a subsidy that pays for the feasibility studies developers need before they can build a small hydropower plant. The additional call, covering projects for the year to March 2027, runs from September 28 to October 28, 2026, with applications due by 5pm on the closing day.
The program's budget for the fiscal year to March 2027 is ¥470mn, covering three tracks with sharply different terms. Local governments planning to hand plant operation to a private company under a public-private partnership (PFI) get the whole cost of their site studies covered, up to ¥20mn per site each year. Municipalities working with a private partner can claim up to two-thirds of costs, again capped at ¥20mn per site annually. Private developers going it alone get only half, under the same ¥20mn ceiling.
| Track | Who can apply | Subsidy rate | Cap per site, per year |
|---|---|---|---|
| PFI-requirement business | Municipalities planning to award plant operation via a public-private partnership | Full cost (10/10) | ¥20mn |
| Municipal-collaboration business | Municipalities, or private firms partnering with a municipality | Up to two-thirds | ¥20mn |
| Private-business standalone | Private developers planning their own small hydro project | Up to half | ¥20mn |
All three tracks target the same slice of the market: plants generating between 50kW and 30,000kW, including projects to repower or expand the intake of existing facilities. The two municipal-linked tracks, for public-private partnerships and for municipal collaborations, also cover studies for replacing existing equipment; the private-developer track's evidence lists only repowering and intake-increase studies, not replacement. Pumped storage does not qualify under any track.
The money comes from a national subsidy administered under Ministry of Economy, Trade and Industry rules, and NEF's guidelines carry warnings typical of Japanese state-backed grants: false statements in an application, or diverting subsidized equipment without approval, can trigger repayment plus a 10.95% annual surcharge and public disclosure of the offending applicant's name.
NEF will hold two online briefings for prospective applicants, on October 6 via Google Meet and October 14 via Microsoft Teams, both starting at 9:30am. Most applicants must apply through the government's jGrants portal, which requires a GBizID Prime account that NEF says takes about two weeks to obtain, worth noting given the one-month application window. NEF warns it may close the call early if applications exceed the available budget before the October 28 deadline.
The foundation expects to notify successful applicants in late November, with most funded studies due to finish by the end of February 2027.