Sustainability of rural micro-hydro

A rural micro-hydro (MH) project (up to 100 kW) is sustainable when it keeps providing reliable, affordable service for its whole life without outside support, and without harming people or the environment. We can judge it by the following dimensions.

1. Technical sustainability
   • A reliable water source throughout the year (checked with flow measurements), proper design and good-quality equipment.
   • Local technicians trained for operation and repair; spare parts available (Nepal has local turbine manufacturers).
   • Protection of the intake and canal from floods and landslides.
2. Financial / economic sustainability
   • Income from tariffs (and productive uses) covers operation and maintenance, salaries, repairs, and a depreciation fund.
   • Productive end uses (agro-mills, workshops, cold storage, lodges) increase load and income during the daytime.
   • The AEPC subsidy lowers the upfront cost, and any bank loan can be repaid without putting stress on poor households.
3. Social / institutional sustainability
   • A community-owned and managed organisation (a Users' Committee/cooperative) with clear rules, transparent accounts, and gender and caste inclusion.
   • Local ownership and participation from planning to operation.
4. Environmental sustainability
   • Small water use leaving enough flow for the river (minimum flow), little land disturbance, and replacing firewood and kerosene reduces emissions and deforestation.
   • Watershed protection by the community.
5. Policy support: subsidy, technical support from AEPC, grid interconnection policy so that surplus power can be sold to NEA.

If all these conditions are met, the project can run for 20+ years and help local development; if not, it ends up broken, as many early schemes did.