Abstract
Electricity is one of the key determinants for economic growth of a nation. Although the benefits of rural electrification are immense, more than 44% of the people do not have access to electricity in Nepal. Micro-hydropower (MHP) scheme is considered the most feasible decentralized renewable energy option for providing reliable and affordable electricity to the remote and isolated areas of Nepal. This study assesses the impact of a MHP plant on socio-economic conditions in the remote village, Sikles, in Nepal. Cross-sectional research design was used to collect information with a structured questionnaire, key informant interviews, and focus group discussions. Results revealed that the village electrification had brought a series of positive changes in the rural livelihoods. Traditional kerosene lamps like Tuki and Panas were completely abandoned, and firewood consumption was reduced. Electric lights in households extended the day providing additional hours for evening reading and work. The micro-hydro based electricity was used to power modern agro-processing mills in the village, which reduced drudgery for women as they no longer had to use ineffective and distant traditional water mills. Thus, micro-hydro scheme provides clean, affordable and sustainable renewable energy both locally and globally. Key words: Renewable energy, micro-hydropower, poverty, rural electrification, socio-economic.  
Highlights
Electricity, the most efficient and cleanest form of modern energy, is a critical component of economic development (Pokharel, 2007)
Despite having huge hydropower potential, by the end of fiscal year (FY) 2009/2010, only 716 MW of electricity has been generated in Nepal and 44% of the population live without electricity (MOF, 2010; WECS, 2010; Wegstein, 2010)
In rural Nepal, the establishment of MHP was initiated by private entrepreneurs rather than the Nepal government in which financial support is available from the Agricultural Development Bank of Nepal (ADB/N) (Khennas and Barnett, 2000)
Summary
Electricity, the most efficient and cleanest form of modern energy, is a critical component of economic development (Pokharel, 2007). More than two billion people still lack access to electricity and rely on traditional biomass such as firewood, agricultural residues, charcoal, and animal dung for cooking, heating and lighting in their homes (IEA, 2002; WDR, 2010). Using these insufficient technologies, basic energy needs can hardly be met and contributes to maintaining the cycle of poverty in developing countries (IEA, 2002; Peters et al, 2009). Nepal is bestowed with water resources where more than 6,000 perennial rivers and rivulets flow with an annual average water runoff of 225 billion m3 thereby providing huge hydropower potential (Sangroula, 2009). Power deficits are further exaggerated during the long dry period (October to March) as most of the larger hydropower projects are based on the seasonal flow of rivers
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