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Small-hydro power (SHP) is one of the growing segments in the renewable energy space. Unlike the state driven growth witnessed in the solar and wind segments, there has been a steady increase in SHP capacity over the past few years. The segment witnessed a capacity addition of 1,419 MW during the Eleventh Plan period, slightly higher than the target of 1.400 MW. As per the Ministry of New and Renewable Energy (MNRE), its total installed capacity stands at 3,395 MW.

Hydropower has been the backbone of energy supply in Uttarakhand, which is endowed with several rivers and mountains. State-owned generation utility, Uttarakhand Jal Vidyut Nigam Limited (UJVNL) is the leading company responsible for tapping the huge hydropower potential, of over 18 GW, in the state. As the state nodal agency for the development of small-hydro power (SHP) plants.

Bihar has an estimated renewable energy potential of 12 GW to 18 GW. To harness this potential , the state government announced the Bihar Policy for Promotion of New and Renewable Energy Sources, 2011 in June 2011, which will remain in effect till June 2016.

In a bid to improve energy access and quality, Bihar, which is currently the fastest growing Indian state, has shifted its focus to renewable energy as an effective solution, especially for areas that do not have grid access or where the grid is unreliable.