Nepal’s economic and social development is being hampered by its inadequate energy supply. The country does not have its own reserves of gas, coal or oil. Although its most significant energy resource is water, less than one percent of the potential 83,000 megawatts of hydropower is currently harnessed. Firewood is the predominant energy carrier, counting for more than 70 per cent of consumption. However, its use is inefficient and poses a threat to the country’s forests. At the same time, the indoor pollution caused by open hearths in homes presents a hazard to health. Mains electricity is generally only available in urban areas and some 60 percent of the population do not have access to it.
The hydropower resources must be exploited in an environmentally sound manner. The energy generated should benefit small and micro businesses while improving the standard of living and the health of local people. It should contribute to the protection of forested areas and, by being fed into the national grid, should bring new revenue to the region.

A project is now being implemented on ‘Small Hydropower Promotion’. It serves as a platform for private investors, local authorities, the banking sector, as well as local engineers and building contractors, all of whom can benefit from advice about the feasibility of small hydropower plants.