Hydropower has been recognised as a sustainable source of energy with almost
zero input cost. Its benefits are that it is non-polluting in the sense that it releases
no heat or noxious gases, it has low operating and maintenance cost, its
technology offers reliable and flexible operation, and hydropower stations have
increased efficiencies along with long life. Nepal's huge potential in hydropower is
still untapped. Though Nepal has not yet been able to tap even one percent of its
potential electricity capacity and 60 percent of Nepal's population is still deprived
of electricity, it is fascinating to note that Nepal's start in 1911 in the hydropower
generation almost dates back to a century. As a cheap, renewable source of energy
with negligible environmental impacts, small hydropower has an important role to
play in Nepal's future energy supply. Accordingly, micro-hydro system is becoming
increasingly popular as an energy source in rural Nepal. Use of environmentallyfriendly
technologies and implementation of sound legal and institutional issues
are critical to improve the reach of the population to hydropower. To make the
Plan targets in the power sector a reality, directing more resources to the power
projects focusing on rural population remains the pre-requisite. The major
strategies of the power sector have been appropriately identified as promoting
private sector participation in power generation and distribution, integrating rural
electrification with rural economic development programs, and strengthening
power infrastructure. The immense role of the power sector in contributing to the
generation of broad-based, sustainable and high level of economic growth as well
as improving the relative competitiveness of the economy both on a regional and
global basis makes it imperative that the programs and activities on power sector
development as visualized in the plans and policies be given the utmost urgency,
priority and focus.