Abstract

This chapter deals with an option for socio-economic development in microhydropower. The chapter illustrates that in many developing countries less than 10% of the rural population has access to electricity. Rural electrification through conventional means such as, grid connection or diesel generators is very costly. Fortunately, abundant water resources for energy production are available in some poor countries. Microhydro is perhaps the most mature of the modern small-scale decentralized energy supply technologies used in the developing countries. There are thought to be tens of thousands of plant in the “micro” range operating successfully in China l and significant numbers are operated in wide ranging Countries. This experience shows that in certain circumstances, microhydro can be profitable in financial terms, while at others, even unprofitable plant can exhibit such strong positive impacts on the lives of the poor people. Another important finding is that the microhydro plant can achieve a wide range of quite different objectives. Moreover, it is important to judge the viability of each microhydro investment in terms of a specific objective. Similarly, in the formulation of government or donor policy, it is important not to expect microhydro to achieve many, often conflicting, objectives.

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