This study highlights the development benefits resulting from access to electricity for rural and remote communities in Nepal. It is based on the successful expansion of the Rural Energy Development Programme executed by the Alternative Energy Promotion Centre. Aimed at increasing access to decentralized energy systems in rural Nepal,the programme has adopted community mobilization as the pillar of its activities. This assessment illustrates the development benefits of rural electrification through micro-hydropower in improving the quality of life of people in rural and remote areas of Nepal. Such benefits of access to electricity have made a profound contribution to multiple aspects of human development, from poverty to health, education, gender equality, access to information and communication and environmental sustainability. It is hoped that this study will also encourage other developing countries to develop their own rural energy initiatives to help communities break free from poverty and achieve real progress towards the Millennium Development Goals.