Micro hydropower to generate electricity in Nepal started with Pharping plant with an installed capacity of 500 kW in 1911 followed by Sundarijal and Panauti, in 1936 and 1965 respectively. Up to 1980, the focus was laid primarily on large-scale power generation through large hydro and thermal means, the micro-hydro potential remained untapped. In the first four years (1981–1985), the government started subsidising the micro-hydro plants. The number of plants has been increasing thereafter. Most of these plants are off-grid isolated plants serving for local villages. In 2000, Alternative Energy Promotion Centre was formed to look after the micro-hydropower in Nepal. It defined the plants in the range of 10-100 kW as micro hydropower. As of 2018, about 3000 microhydro projects have been ins
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