Nepal is a small mountainous and landlocked country. Poverty is the key phenomenon which is more severe in rural areas where 86% population reside. Inaccessibility, fragility, marginality and diversity are the mountain specificities which pose challenges for any development. Despite the planned development efforts of more than 50 years, today only about 40% of the total population of 23,214,681 (2001 Census) have access to the electricity from the national grid. The condition is still worse in rural Nepal where about 80% of the people do not have access to the electricity thereby leaving them to depend upon fuelwood, animal wastes and agricultural wastes to meet their ever increasing energy needs. As the consequences, the pressure on the natural resources has intensified worsening environmental degradation and hindering significant social and economic transformation. Experiences have proven that the prevailing practices of centralised development approach are not suitable for accessing electricity to the rural locations which are marked by the difficult terrain, scattered settlements and poor economic conditions. In this context, different development initiatives have proven that the promotion of rural energy technologies, primarily micro hydro system in a holistic manner encompassing social, economic and environmental aspects is the best feasible option for the rural electrification in settlements which are not likely to be connected by the national grid in the foreseeable future. Presently, many national and international agencies, donor organisations and non-government organisations have shown interest and support for the implementation of programmes and projects for the wide scale promotion and dissemination of rural energy technologies in the country. Among others, the Rural Energy Development Programme (REDP) is a "best practice" programme that is recognised and rewarded both in national and international arenas for its sustainable modality of harmonising technology, social capital and natural resources for rural development and strengthening livelihoods.
