This paper assesses how developing a part of Nepal’s hydropower potential results in stronger economic growth and significantly reduces poverty while delivering environmental benefits and climate change mitigation.
 
Hydropower has the potential to play an important role in South Asia, which faces growing demand for clean, reliable, and affordable energy. However, environment and social impacts raised serious concerns about hydropower during the 1990s, and many development agencies reduced their support for hydropower. Growing concerns about climate change has renewed interest in hydropower. This paper assesses the economic and environmental benefits of hydropower development taking on Nepal as a case study.