With the expansion of the central grid to remote areas of Nepal, reaching nearly 99 percent of households across the country, many micro and small-scale hydroelectric plants are facing financial difficulties, and some have already been forced to close down.

In light of this crisis, the National Micro and Small Hydro Users Society of Nepal (NMMHUS) recently concluded its eighth Annual Meeting, calling for the protection and promotion of micro-hydropower.

As Nepal recently submitted its NDC-3, pledging to achieve zero emissions by 2045, the role of micro-hydropower plants is becoming increasingly important. Several small-scale pilot projects conducted by various organizations have demonstrated the potential for generating hydrogen energy.

Currently, over 2000 small micro-hydro plants contribute more than 45 MW of clean electricity to the nation, serving various regions of Nepal. However, many of these plants are at risk of closure due to the expansion of the central grid.

Efforts are underway to connect micro-hydro plants to the central grid, with some plants already successfully connected at a cost of approximately Rs.6 million. Despite these initiatives, the investment required for grid connection remains a significant challenge.

The eighth national general assembly of the society was inaugurated by Deepak Khadka, Minister of Energy, Water Resources, and Irrigation. During his opening speech, Minister Khadka reassured small micro-hydro projects that the government would provide the necessary support to connect their energy to the central grid. He emphasized the significant contribution of small and micro-hydro plants to Nepal.

Nawarj Dhakal, Executive Director of the Alternative Energy Center (AEPC), highlighted the support provided by AEPC to small and micro-hydro projects for their sustainability and role in providing clean energy in the country.

He mentioned that many of these projects have shown potential for sustainability by connecting to the national grid and generating income, thereby enhancing generation capacity and contributing to the nation's goal of zero emissions.

Satish Gautam, senior national advisor to Renewable Energy for Rural Livelihood (RERL), presented an overview of the energy sector, emphasizing the current sustainability challenges faced by small and micro-hydro projects. He noted that connecting to the national grid is crucial for their sustainability, despite the investment required.

The assembly, chaired by Nawaraj Dhakal, featured various speakers discussing strategies to sustain micro-hydro projects.

Dilli Ghimire, chief advisor of the society, stressed the importance of government protection for small micro-hydro projects and the need for alternative solutions. He highlighted the risk of shutdown faced by many micro-hydro projects due to the lack of a local market, despite being community investments totaling around Rs.12 billion.

He stated that small and micro-hydro projects have been instrumental in promoting energy enterprise development in rural areas. "For the sustainability of rural enterprise and entrepreneurship, small and micro hydro is crucial," Ghimire emphasized. Narayan Gyawali, president of the National Association of Community Electricity Users Nepal (NACEUN), highlighted the significant role of small and micro-hydro plants in empowering the rural poor population through electricity.

Kalabati Timilsina, chairperson of Energy, Environment, and Women, underscored the vital role of small and micro hydro in fostering women's leadership in rural areas. She called for support and subsidies to ensure the sustainability of small and micro hydro projects connecting to the national grid. The society, with 172 institutional members, is a leading organization advocating for the interests of micro-hydro projects and lobbying for their recognition. Narayan Dhoj Khadka, Chairperson of the society, reported at the Annual General Meeting on how small and micro-hydro plants are affected by the expansion of the central grid. He emphasized the government's need to acknowledge the contributions of these projects in bringing electricity to rural areas.

Shanta Khadka, treasurer of the society, presented the financial report detailing the annual income and expenditure. With the central grid expanding, micro-hydro projects face challenges in sustaining themselves. Biraj Gautan, Executive Director of People, Energy, Environment Development Association (PEEDA), shared that their study revealed an investment of 6 million to connect to the central grid could be recovered within five years. He mentioned that over 11 plants have already been successfully connected to the central grid.