LocationsLighting Up Lives in Nepal’s Mountains
March 20, 2025
Locals help in setting up a micro-hydro powerplant by clearing a path for electrical lines.
Access to energy is fundamental to fulfilling basic needs, driving economic growth, and advancing human development. In Nepal’s remote Himalayan villages—beyond the reach of the national grid—UNDP’s investment in micro-hydropower created lasting impact.
As a widow, Pabitra Giri’s life was once a relentless cycle of farm work from dawn to dusk. Her evenings were spent in cooking by the dim light of a kerosene lamp, while her children struggled to study in the flickering light. And then, everything changed!
In October 2007, the completion of a micro-hydropower plant in Kharbang, Baglung brought electricity to her village, transforming daily life. “With electricity, my children could study after dark, modern conveniences became part of my household, and I, along with members of a local women’s cooperative, initiated a small soap-making business, securing a stable income to support our family's future," Pabitra recalled.
Women from a local cooperative produce soap to sustain their business after the operation of the micro-hydropower plant.
Empowering Remote Communities
Extending the national power grid to remote and scattered settlement in Nepal’s rugged terrain is challenging and costly. By the mid-1990s, only 15% of the population had grid electricity, with a few villages along trekking routes powered by micro hydropower plants (MHPs). Hence, the government and UNDP identified community-owned MHPs as a viable alternative as they were cheaper and faster to build than the large hydropower plants. As part of the Rural Energy Development Programme (REDP), UNDP invested its core resources in building small-scale, community-led hydroelectric plants, generating anywhere from a few kilowatts to 100kW, depending on the size of the village and availability of water source.
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Building on the success of REDP (1996–2011), which prioritized electricity access through community managed microhydro plant, the government and UNDP launched the Renewable Energy for Rural Livelihoods (RERL) programme to maximize electricity use for economic growth. With $13.2 million from UNDP and $21.5 million from the World Bank, over 400 MHPs were installed between 1998 and 2014 through the Alternative Energy Promotion Centre (AEPC), Nepal’s lead agency for promotion of renewable energy. This brought electricity to 100,000+ households—benefiting more than half a million people—and enabled over 1,000 energy-based enterprises in off-grid areas.
A village in Western Nepal received electricity through an off-grid micro-hydro plant with support from UNDP’s Rural Energy Development Programme (REDP) project.
Beyond power generation, the energy programme promoted community mobilization, women’s empowerment, and social inclusion, ensuring that disadvantaged groups benefited. Its transparent, participatory approach was so effective that it became a model for other organizations in Nepal and beyond.
"When villagers see an electric bulb light up for the first time, their smiles stretch from ear to ear. It’s not just about electricity—it’s about dignity and opportunity."- Kiran Man Singh, REDP’s National Programme Manager.
More Than Just Electricity
Micro-hydropower has transformed lives beyond simply lighting homes. In Kharbang alone, the 75 kW Girindi Khola MHP powers over 50 small businesses, including Pabitra’s soap factory, welding and mobile repair shops, an ice cream parlor, and even a cybercafé. A once daylight-dependent health clinic now operates in the evenings, refrigerates vaccines, and runs an X-ray machine—vastly improving healthcare access. Meanwhile, the local public school introduced computer classes, and young entrepreneurs launched a community FM radio station.
A MHP which powers over 50 small businesses, a public school, a health clinic, and a community FM radio station enriching numerous lives.
UNDP’s strategic, long-term support to AEPC has strengthened technical expertise and driven innovation in this area. To make micro-hydro plants more affordable, UNDP increased grant support, covering 50% of non-local costs in addition to the government’s 50% subsidy on electrical equipment—easing the financial burden on rural communities. This success influenced national policy, leading to expanded subsidies for energy-based enterprises, which further boosted rural productivity and income diversification.
"This was a remarkable achievement—villages gained electricity decades before being connected to the national grid," says Govind Raj Pokharel, former Executive Director of AEPC, recognizing UNDP’s critical role in funding, technical assistance, and policy support.
A Model for Community-Driven Development
Besides, UNDP also supported the government to promote a decentralized renewable energy system across the country which was institutionalized by the Rural Energy Policy (2006) in District Development Committees, a local elected body, across all districts, ensuring strengthened local governance and decentralized development aligned with the Local Self-Governance Act 1999.
A remote village enjoys access to electricity for the first time through a micro-hydro plant.
“We cannot take credit for introducing micro hydro to Nepal —it existed since early 1960s. But UNDP’s contribution is that we put communities at the center, and by giving them ownership over procurement, construction, and management, we ensured sustainability.”- Kyoko Yokosuka, UNDP Resident Representative
For Pabitra and thousands of others, each flicker of a lightbulb represents renewed hope and opportunity—proof that community-driven solutions can transform even the most remote corners of Nepal.
Enriching lives from darkness to opportunity.
