In the medium to long term, the authorities are planning to expand hydro generation capacity. According to the Strategy for Energy Development (MANU, 2010), existing and new renewables could contribute up to 4,600 GWh by 2030, 90 percent of which would come from hydro.
The economics of some of the proposed hydro generation plants are not always compelling. Based on a 7 percent return on investment, the Strategy calculates that the cost per KWh for hydro would be in the range of 3.0