Discharge water from fish farms is a clean, renewable, and abundant energy source that has been used to obtain renewable energy via small hydropower plants. Small hydropower plants may be installed at offshore fish farms where suitable water is obtained throughout the year. It is necessary to meet the challenges of developing small hydropower systems, including sustainability and turbine efficiency. The main objective of this study was to investigate the possibility of constructing a small hydropower plant and develop 100 kW class propeller-type turbines in a fish farm with a permanent magnet synchronous generator (PMSG). The turbine was optimized using a computer simulation, and an experiment was conducted to obtain performance data. Simulation results were then validated with experimental results. Results revealed that streamlining the designed shape of the guide vane reduced the flow separation and improved the efficiency of the turbine. Optimizing the shape of the runner vane decreased the flow rate, reducing the water power and increasing the efficiency by about 5.57%. Also, results revealed that tubular or cross-flow turbines could be suitable for use in fish farm power plants, and the generator used should be waterproofed to avoid exposure to seawater.