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Energy is an important need of human life. It is the lifeblood of all economic activities. Due to increase in population andeconomic activities, the need for energy is increasing at a faster rate.Without having sufficient energy, the goal of economic and socialdevelopment and the Millennium Development Goals in particular cannot beachieved. Most of the rural areas in different parts of the world arewithout electricity. About 1.6 billion people in the world who areliving in rural areas are without electricity [Greenstone (2014)]. Thereason is that it is too costly to provide electricity services to ruralcommunities through conventional means due to remote location and lowdensity of population. Moreover, due to poverty and low income the ruralinhabitants are not in a position to afford the main grid electricity.The use of diesel and gasoline has been used for decades for provisionof electricity to rural areas. But it was not so successful due toeconomic, technical and environmental problems [Woodruff(2007a)].

Micro Hydro Power: A Source of Sustainable Energy in Rural Communities: Economic and Environmental Perspectives