Social enterprise case study from the Prowess archive, updated for 2026.

Name: Helen Walker
Enterprise: Water Power Enterprises (h2ope) (CIC)
Focus: Community-owned hydroelectric power

Helen Walker co-founded Water Power Enterprises, known as h2ope, as a community hydro social enterprise structured as a community interest company (CIC) in January 2007. Working with her partner, she spent around a year developing the business plan before incorporating, bringing six years’ experience of supporting other social enterprises in the third sector. The venture set out to show that a business could cut carbon emissions, generate clean electricity and return value to local people rather than distant shareholders.

What h2ope set out to achieve

h2ope’s core mission was to harness the untapped power of small-scale hydro on the river weirs that once drove the Industrial Revolution. The CIC developed hydro turbines that could be installed in these existing structures, turning flowing water into green electricity without building new dams or reservoirs.

The model was deliberately community centred. h2ope invited local and national social investors to back each project, encouraged residents to take ownership, and reinvested all profits into the surrounding area through grant schemes or by developing further hydro sites. The aim was not only to generate low-carbon power, but also to act as an ambassador for social enterprise, demonstrating that a viable, sustainable business could put community benefit first.

Torrs Hydro New Mills: the UK’s first community-owned hydro scheme

The flagship project was Torrs Hydro New Mills, developed in 2007 and launched in 2008 in New Mills, Derbyshire. It became the UK’s first community-owned hydroelectric scheme, installing an Archimedes screw turbine in the River Goyt at the Torrs gorge. The project was designed to generate enough renewable electricity to power the equivalent of around 70 homes, according to the project’s 2008 estimates.

At the time, community-owned energy was still a fringe idea. Today it is part of a much wider movement. According to Community Energy England’s 2023 State of the Sector report, there are 424 community energy organisations across England, Wales and Northern Ireland, with a combined clean energy capacity of 317 MW. These organisations have over 265,000 members and a collective turnover of £193 million. That capacity is enough to power roughly 200,000 homes.

Small-scale hydro remains one of the more site-specific renewable technologies, but schemes such as Torrs Hydro demonstrated that run-of-river projects can deliver long-term, low-maintenance generation while keeping economic benefits local.

Why Helen chose the social enterprise route

Helen’s route into social enterprise came from a private-sector role at an internet company where the sole measure of success was shareholder return. While there, she introduced an employee share-ownership scheme and read Andy Law’s Open Minds, a book that champions employee ownership. The experience convinced her that business could be structured around shared benefit rather than private gain.

After a career break, she moved into the third sector and spent six years advising people who wanted to start social enterprises. That practical grounding shaped h2ope’s structure as a CIC. The CIC is now one of the most popular legal forms for social ventures in the UK. As of 2024, the CIC Regulator lists more than 100,000 CICs on the register, covering everything from renewable energy and childcare to creative industries and community shops.

Business support and funding options

In its early years, h2ope drew on a mix of grants and business support. The team worked with regional social enterprise networks, secured European funding through the Urban 2 programme, and received investment from the South Yorkshire Key Fund, a community development finance institution. Awards and support also came from UnLtd, the foundation for social entrepreneurs, which continues to offer funding and mentoring for early-stage social ventures.

For women founders exploring similar paths today, the funding landscape has shifted but the principles remain the same. The Feed-in Tariff closed to new applicants in 2019 and was replaced by the Smart Export Guarantee, which requires larger energy suppliers to pay small-scale generators for excess electricity exported to the grid. Useful sources now include:

• Community Energy England and Community Energy Wales for peer networks, toolkits and project guidance.
• UnLtd, the Key Fund and Social Investment Business for grants, loans and investment-readiness support.
• Social Enterprise UK and Co-operatives UK for legal structures, policy updates and training.
• Local combined authorities and regional growth funds for place-based funding.

Women founders can also explore business grants for women in the UK and Start Up Loans for women founders to supplement sector-specific finance.

Social enterprise as a growing sector

The sector Helen helped pioneer has grown substantially. Social Enterprise UK’s 2023 sector estimate suggests there are around 100,000 social enterprises in the UK, contributing approximately £60 billion to the economy and employing roughly 2 million people. Many are led by women. Research consistently shows that women founders are more likely than male founders to prioritise social and environmental impact alongside profit.

That growth has not been without challenges. Cuts to the Feed-in Tariff in 2015 slowed community energy project development, and access to patient capital and start-up grants remains uneven. Yet the underlying demand is strong. Social investors, ethical banks, community share offers and crowdfunding platforms have all expanded the funding options available to mission-led businesses.

For context on the wider women in business landscape, see Women in Business: Key UK Facts.

Advice for women starting a social enterprise

Helen’s advice to women thinking about starting a social enterprise was simple: “If you are passionate about something then follow this passion; it is a far better way of doing business.”

That still holds true. A clear social or environmental purpose can sustain you through the inevitable setbacks of early-stage business. It also helps attract customers, partners and investors who share your values. For women founders, building a strong support network, choosing the right legal structure and understanding your funding options are just as important as the mission itself.

Lessons from this community hydro social enterprise

Water Power Enterprises showed that a community hydro social enterprise could be more than a good idea. It could be a working business model. By combining hydro technology with a CIC structure and community investment, Helen Walker and her team created a template that others could adapt.

The project also illustrated a wider point: women-led social enterprises can play a leading role in the transition to net zero. Whether the focus is renewable energy, sustainable food, circular fashion or care services, the combination of commercial discipline and social purpose is a powerful one.

Action steps for women founders

• Map your local assets. Community energy projects often start with an underused resource such as a weir, roof space or wasteland.
• Choose a legal structure that locks in your mission. A CIC, community benefit society or co-operative can protect your social purpose as you grow.
• Build your funding mix early. Combine grants, patient capital, community shares and revenue from schemes such as the Smart Export Guarantee.
• Connect with sector bodies. Community Energy England, Social Enterprise UK and Co-operatives UK offer toolkits, networks and policy guidance.
• Start small and prove the model. Torrs Hydro began with one turbine in one gorge before inspiring a national movement.

This article is based on a Prowess archive interview from 2007 to 2008, updated in 2026 to reflect current sector context and data.