Alternative Energy Promotion Centre-AEPC has been promoting mini/micro hydropower projects in the country. Government of Nepal with supports from various development partners has been providing subsidy supports and technical assistance to develop mini/micro hydropower projects. The regular subsidy supports for these projects are felt inadequate. These days, the subsidy covers less than 40% of the total project cost and the remaining cost is to be borne by the developers (people) themselves. This has caused very low penetration of mini/micro hydropower projects in Mid and Far Western Development regions. Therefore, the Government of Nepal has allocated additional budget support for development of micro and mini hydropower projects in the fiscal year 2067/68 BS.

The Mini/Micro Hydropower Projects having installed capacity of 10 kW to 500 kW which are being developed with the support of Energy Sector Assistance Program-ESAP and Renewable Energy for Rural Livelihood-RERL under the AEPC may apply for additional support. The projects should be located in thirteen most remote districts (Humla, Jumla, Kalikot, Dolpa, Mugu, Rolpa, Rukum, Jajarkot, Bajhang, Bajura, Achham, Dailekh, Darchaula) and in most remote VDCs (defined by GoN/MoLD). Similarly, only those projects which have not been able to obtain final approval from Rural Energy Fund –REF or which have not obtained any installment of subsidy from the District Energy Fund until 2067/12/16 (the date of approval of procedures) will be eligible for the additional support. Government of Nepal has already approved "Micro and Mini Hydropower Project Additional Financial Support Mobilization Procedures, 2067" to effectively deliver the additional supports. A special committee under the chairmanship of the executive director of AEPC has been established for approval of the additional support.

• Approved MicroHydro Projects for Additional Financial Support Program till July 2011
• Delivery Mechanism for Mini/Micro Hydro Projects for Additional Support