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Small Hydropower Service Package

Comprehensive manual of UNIDO services for sustainable small hydropower development.

Small Hydropower Service Package Solution

Overview

The Small Hydropower (SHP) Service Package by UNIDO is a comprehensive toolkit designed to support countries in developing sustainable SHP projects. With a flexible, step-by-step approach, it addresses key challenges such as energy access, climate resilience, and rural development. The package begins with an assessment of hydropower potential through demand analysis, guiding governments in planning and implementing projects suited to local needs. By integrating SHP with solar and wind in hybrid grids, it provides off-grid energy solutions for rural areas, while business-targeted SHP offers affordable power to drive economic growth and job creation.

The SHP Service Package also enhances social and environmental outcomes by improving access to healthcare, education, and smart agriculture through reliable power. It contributes to climate resilience through innovations like early warning systems for flood control, predictive maintenance using AI, and solutions within the Water-Energy-Food Nexus. Through SHP, countries can advance their renewable energy goals, improve livelihoods, and contribute to the Sustainable Development Goals.

Approach

The Small Hydropower Service Package provides a structured, adaptable approach for countries to implement sustainable SHP projects, addressing energy access, rural development, and climate resilience. It is structured along six modules. 

The objectives of Module 1 are to establish a baseline for the national energy situation, identify priorities & areas of intervention in hydroelectricity, and ensure stakeholders’ support for the proposed interventions. The module is to establish the Small Hydropower (SHP) programme/strategy formulated and validated with key stakeholders, assess capacity gaps and institutional needs, and conduct stakeholder consultation workshops. It is possible to choose only some of the services from this module (not mandatory to carry out all of them).

Module 1 is providing 12 services:

  1. Improving national electricity system/development plans (including SHP/RE development targets)
  2. Improving national energy security
  3. Analyzing distribution of hydropower resources
  4. Evaluating climate change risks
  5. Analyzing potential for SHP developmen
  6. Rehabilitating & improving existing SHP plants
  7. Enhancing policy, regulations and financial instruments for SHP
  8. Surveying social, economic and environmental demand in a given area
  9. Analyzing SHP demand for rural industrial application/mini-grids
  10. Investigating social attitude towards SHP
  11. Ensuring availability of local expertise
  12. Enhancing gender balance and youth involvement in the sector

Educating policymakers with the newest technologies and innovative strategies for small hydropower is essential for promoting its adoption as a sustainable energy source. Policymakers play a critical role in shaping energy policy, and their decisions have a significant impact on the development and implementation of small hydropower projects. By educating policymakers about the latest technologies and innovative strategies for small hydropower, we can help them understand the potential of this technology to meet growing energy demands while reducing greenhouse gas emissions. Policymakers can also learn about the economic and social benefits of small hydropower, including job creation, rural electrification, and improved energy security.

Module 2 is providing 10 services:

  1. Designing introductory workshops to senior policy makers
  2. Improving technical workshops on international best practices
  3. Enhancing information gathering from all stakeholders
  4. Developing policy enhancement proposals
  5. Enhancing policy dialogues to discuss policy options
  6. Upgrading policy roadmap for SHP improvement
  7. Increasing institutional capacity for successful benefit sharing
  8. Enhancing policy and institutional advocacy support
  9. Promoting Implementation & coordination modalities
  10. Support with implementing policy instruments

The objectives of Module 3 are to strengthen SHP by assisting countries or transition economies in the adoption of improved technologies and conforming to the standards required by international markets. Capacity building does not necessarily refer to a one-off intervention. It is an ongoing process that involves continuous rounds of stakeholder engagement, evaluation and readjustments. It is possible to choose only some of the services from this module (not mandatory to carry out all of them).

Module 3 is providing 7 services:

  1. Assessing capabilities and needs of SHP
  2. Delivering training modules & organizing training workshops
  3. Identifying & securing the commitment of host institutions
  4. Preparing examination & final assessment
  5. Establishing support structures
  6. Generating case studies & disseminating knowledge
  7. Enhancing gender balance and youth involvement in the sector

The objectives of Module 4 are to identify a pipeline of projects for financing, enhance the capacity of SHP developers in preparing bankable investment proposals and develop business models for upscaling SHP investment. UNIDO and the ICSHP aim to formulate or change policies, laws, regulations and resource allocation that affect people and the environment. It is possible to choose only some of the services from this module (not mandatory to carry out all of them).

Module 4 is targeting 8 services:

  1. Identifying initial pipeline of projects/carrying out feasibility study/ design
  2. Supporting the development of bankable proposals
  3. Sharing SHP proposals with the investors
  4. Assessing the potential investment
  5. Investigating possibilities for industries application and supporting youth business incubators
  6. Creating “matchmaking” platforms/portals for projects, developers and investors
  7. Supporting the implementation of demonstration projects
  8. Supporting the scaling up of SHP projects in the country

The objectives of Module 5 are to provide guidelines for local and international Small Hydropower (SHP) project developers to set up a bankable business model to reduce potential risk and enhance financing opportunities for their SHP projects. This module focuses mainly on SHP projects for power generation or substitutes the conventional energy sources. UNIDO can not provide financing. It is possible to choose only some of the services from this module (not mandatory to carry out all of them).

Module 5 is providing 8 services:

  1. Defining risks & success factors of financing SHP projects
  2. Assessing capacity needs of banks & financial institutions
  3. Establishing business models and financial models for SHP projects
  4. Financing SHP projects
  5. Supporting policy instruments to facilitate SHP development
  6. Establishing investment criteria for financing agencies
  7. Designing financial mechanism with de-risking instruments
  8. Supporting financing for developers and investors

The objectives of Module 6 are to enhance the visibility & understanding of Small Hydropower (SHP) projects and efforts at the national level, establish strategic and sustainable partnerships with key stakeholders to strengthen advocacy around SHP at the national level and contribute to global Accelerator advocacy efforts with project inputs. It is possible to choose only some of the services from this module (not mandatory to carry out all of them).

Module 6 targets 7 services:

  1. Mapping communication and outreach needs and opportunities
  2. Improving stakeholder mapping for engagement
  3. Developing promotional and advocacy materials
  4. Producing case studies to showcase SHP success
  5. Engaging regularly with national media
  6. Documenting key project milestones to promote SHP globally
  7. Encouraging participation in some global or regional award initiatives

Impact

The objectives are to enhance energy access, promote sustainable development, and support member states in achieving renewable energy goals, measured by SHP project implementation, increased renewable energy capacity, and contributions to national and regional development plans.

Key Indicators

5000+ homes and businesses connected to sustainable power through SHP

$200M+ Investment Mobilized in co-funding for SHP projects.

SDGs:

SDG 7: Affordable and Clean energy
SDG 9: Industry, Innovation and Infrastructure
SDG 13: Climate action

UNIDO Priorities:

Ending hunger
Clean energy and climate action
Sustainable supply chains

Thematic Area(s):

Renewable and clean energy
Energy efficiency
Industrial decarbonization
Sustainable agribusiness
Agro-technology and innovation
Rural development
Gender equality and women
Training and skills
Policy advisory
Research and statistics
Country programming
Technology used

Technology Used

Advanced small hydropower turbines, integrated with hybrid solar and wind systems; innovative solutions, artificial intelligence; smart irrigation and flood monitoring systems that support agriculture and climate adaptation.

Catalytic outlook

Catalytic Outlook

The SHP Service Package will scale energy access, boost local economies, and enhance climate resilience, contributing to a broader global transition to sustainable energy systems.

Unique Characteristics

Unique Solution Characteristics

SHP solutions are scalable and decentralized, adaptable to various regions, and can expand with growing energy demand. Involving local businesses, women, and youth ensures lasting community benefits. SHP enhances green energy production, contributing to climate change mitigation by reducing carbon emissions, while simultaneously potentially supporting climate adaptation through efficient irrigation systems, water storage, and reliable heating and cooling solutions.

Previous Funding Source(s)
  1. United Nations Industrial Development Organization
  2. Global Environment Facility
  3. European Union (EU)
  4. Green Climate Fund
Dedicated Resources

Includes training materials, comprehensive technical guidelines, and policy support documents.

 

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