Electricity is one of the key determinants for economic growth of a nation. Although the benefits of rural electrification are immense, more than 44% of the people do not have access to electricity in Nepal. Micro-hydropower (MHP) scheme is considered the most feasible decentralized renewable energy option for providing reliable and affordable electricity to the remote and isolated areas of Nepal. This study assesses the impact of a MHP plant on socio-economic conditions in the remote village, Sikles, in Nepal. Cross-sectional research design was used to collect information with a structured questionnaire, key informant interviews, and focus group discussions. Results revealed that the village electrification had brought a series of positive changes in the rural livelihoods. Traditional kerosene lamps like Tuki and Panas were completely abandoned, and firewood consumption was reduced. Electric lights in households extended the day providing additional hours for evening reading and work. The micro-hydro based electricity was used to power modern agro-processing mills in the village, which reduced drudgery for women as they no longer had to use ineffective and distant traditional water mills. Thus, micro-hydro scheme provides clean, affordable and sustainable renewable energy both locally and globally.

Key words: Renewable energy, micro-hydropower, poverty, rural electrification, socio-economic.