The Anafon Hydro was conceived by Directors of the Abergwyngregyn Regeneration Company (ARC) working with Keith Jones from the National Trust, the main landowner in the Anafon Valley. ARC is a social enterprise and a Company Limited by Guarantee incorporated in 2002.  It is managed by a Board of 12 volunteer directors and 3 co-opted members drawn from the community of Abergwyngregyn.

Since its inception, ARC has undertaken a range of community projects:

• raising grant funding totalling c. £470,000 to purchase and renovate Yr Hen Felin/The Old Mill, a large stone building in the centre of the village, to provide a community resource which it now manages - this includes a well-used community room, café and snooker club - Yr Hen Felin Community Centre was opened in March 2006 by Mrs Betty Williams MP; 
  
  
• raising grant funding of c. £25K to purchase and renovate an old pump-house in the village to house a small visitor information point and heritage centre (with toilet facilities) for visitors to the Aber Valley;
  
  
• acquiring and developing a small field at Cae’r Felin to provide a children’s play area and community space for the village;
  
  
• the development of a car park at the entrance to the village to provide free parking for visitors;
  
  
• leasing the Bontnewydd car park serving the Aber Falls and National Nature Reserve and the Carneddau mountain range, from the Snowdonia National Park Authority; 
  
  
• entering into a management agreement with Natural Resources Wales to operate the Forestry car park which also serves the Aber Falls and valley - these car parks currently provide the company with its main income stream.
  
  

ARC was awarded the Queen’s Award for Voluntary Service in 2011. In 2010, in partnership with the National Trust, directors of ARC started to explore the feasibility of developing a hydro-electric scheme on the Afon Anafon above the village and a decision was taken to proceed with the venture. 

The initial phases of development, including conducting detailed feasibility studies and obtaining the necessary consents and permissions, as well as the construction of the hydro in 2015 were managed by three Directors of ARC, Jacqui Bugden, Gavin Gatehouse and Hywel Thomas acting in a voluntary capacity with technical and other expert support.

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