This paper provides an overview of a 100 year history of hydropower in Nepal. The importance of
hydropower in Nepal is highlighted and major issues that the country has to consider for the
development of hydropower have been analysed in detail. It is the only resource available to generate
electricity, both for large export projects and small village mini grid projects in almost any part of the
country. The challenges of demand and supply fluctuations, mainly due to the seasonal fluctuation of
river discharges, are also described. An analysis of river flow trends shows that the impact of river flow
has to be analysed river by river, as the trends are not consistent throughout the country. The social and
organisational issues and their relationship with the political stability in the country have also been
discussed
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