Abstract
A small hydropower (SHP) project is intended to provide positive net economic benefits. Economic and financial analysis is imperative to know the economic feasibility of a project. A project will be considered economically feasible if it generates revenues greater than recurring investments throughout its lifetime. Thus, the lowest cost of power generation is always the primary objective of an SHP plant. The economic evaluation of an SHP project helps in analyzing the present value of all the benefits provided during its life span and provides a basis for comparing possible alternatives for achieving the same intended benefits from the project. In order to get ample funds to execute an SHP project, financial analysis has to be carried out, which confirms its commercial viability.
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