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Small hydro is defined as any hydro power project which has an installed capacity of less than 25 MW. It is in most cases run-of-river, where a dam or barrage is quite small, usually just a weir with little or no water is stored.
Therefore run-of-river installations do not have the same kind of adverse effect on the local environment as large-scale hydro projects. Small hydropower plants can serve the energy needs of remote rural areas independently.
India and China are the major players of the SHP sector, holding the highest number of installed projects.