The hydropower resources existing throughout the Indonesian archipelago are abundant. The development of run of river hydraulic potential and existing irrigation drop structures for small scale power generation results in virtually zero negative impacts on the surrounding environment and ecology. Given the limited capacity of the national electricity utility PLN to fulfill the power requirement particularly in rural areas where it is often economically not feasible to extend high and medium voltage lines, the exploitation of renewable energy sources provides an appropriate alternative. The recent energy policy of Indonesian government to cut energy subsidies increases the competitiveness of hydropower