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Hydropower, in which Nepal has comparative advantage, has a potential to contribute to Nepal's energy security and sustainable development. The government of Nepal enacted the Hydropower Development Policy in 2001 (HDP-2001) as an overarching policy to coordinate all policies forthcoming in this sector. This paper has critically analysed HDP-2001 by applying the Ecosystem services-based Strength, Weakness, Opportunity, and Threat (SWOT) technique. The paper has evaluated peer-reviewed scholarlydoi:10.21467/ajss.7.1.71-80 fatcat:y7qevx7lwfepjnpxzite67uvfu