Small Hydropower Promotion Project (SHPP) - support from water to wire

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The Small Hydropower Promotion Project (SHPP) was implemented in the year 2000. After ten years of promoting small hydropower in Nepal, the project was phased out at the end of 2010. Throughout the three phases of SHPP’s implementation the project’s objective was:

  • Phase 1: The demand for small hydropower stations of the rural population to improve the economic and social living conditions is satisfied through investments in this sector.
  • Phase 2: A market for the development and rehabilitation of small hydropower stations is established and supports the economic activities of stakeholders.
  • Phase 3: The continuous dissemination of small hydropower sites secures the energy supply in rural areas of Nepal.


SHPP has thus continuously worked on the improvement of the small hydropower sector in Nepal, firstly focusing on subsectors of grid-interconnected small hydropower sites (below one MW as well as sites with a capacity of up to 10 MW). During the second and the third phases, SHPP also became engaged with small off-grid hydropower schemes by supporting the existing Alternative Energy Promotion Centre (AEPC LINK), and conducting feasibility studies