A Community-Powered Future: The Story of Upper Yarra Community Hydro

A Community-Powered Future: The Story of Upper Yarra Community Hydro

Nestled in the steep, lush landscape of the Upper Yarra Valley, a small but mighty hydro project is making a big impact, generating clean, renewable energy while remaining rooted in local values and community spirit.

From Vision to Reality

Inspired by over 100 years of hydroelectric history in Warburton, a passionate group of locals spent nearly a decade turning their vision for a community-owned hydropower station into reality. Completed in 2018, the Warburton Community Hydro Project harnesses the energy of Ythan Creek using low-impact technology—no dams, no major disruption to the environment, and fully funded by the community.

Thanks to a $450,000 grant from the State Government’s New Energy Jobs Fund (via Yarra Ranges Council) and a $450,000 loan from Bendigo Bank, Upper Yarra Community Enterprise Ltd (UYCE) brought the $1.3M project to life. An additional $400,000 investment from UYCE covered final costs.

How It Works

Water is diverted from Ythan Creek through a nearly 900-metre underground pipe to a small, grass-roofed powerhouse hidden within Warburton Golf Club. There, a 100kW turbine generates enough energy to power approximately 150 homes, feeding electricity directly back into the local grid. After powering the turbine, the water is safely returned to the creek—maintaining environmental flow and health.

Environmentally Conscious, Community First

The project was carefully designed to meet strict environmental standards. Baseline water quality data was recorded prior to construction, and systems are in place to monitor and adjust flow rates as needed. Local wildlife—including native fish, platypuses, and surrounding flora—remain protected, with minimal impact on natural habitats.

Supporting the Local Economy

As a fully community-owned project, all revenue from the sale of electricity goes back into the Upper Yarra region through UYCE. Once loans and construction costs are repaid, profits will directly fund local initiatives, providing long-term social and economic benefit.

The Warburton Golf Club, which hosts the discreet powerhouse, receives lease and maintenance support. Yarra Ranges Council played a vital role in the project’s planning and execution, while Powershop—Australia’s greenest power retailer—partnered with UYCE to offer efficient grid connections and special energy deals for local residents.

A Model for the Future

This project is more than just a hydro station—it’s a model for community-led renewable energy. By taking control of energy production and investing profits back into the region, Warburton and the Upper Yarra are proving that small communities can make a big difference in the fight against climate change.


Powering today. Investing in tomorrow. Upper Yarra Community Power—locally made, locally owned, locally powerful.