The Co-operative Group (Co-op) is powering its New Mills food store in Derbyshire using water from the nearby River Goyt.
According to the company, the micro-hydro installation can power more than 50% of the store’s energy needs a year.
Local people own and fund the sustainable energy project through a “unique share scheme”, the Co-op said.
Sustainable development manager Chris Shearlock said: “The Co-operative’s family of businesses have worked together to support the innovative scheme, with a grant from The Co-operative Fund to help with the establishment of community-ownership and The Co-operative Bank helping with commercial finance.
“We are also planning to extend this support to further micro-hydro schemes across the country.”
Last month the company also said its members are going to share a £8.9m dividend, based on their trading with the firm in the first half of the year.
The Co-op was one of the biggest winners at last week’s Quality Food Awards, taking home three accolades.
