Local governments have been authorised to issue survey licences for hydropower projects which have less than one megawatt capacity.
However, the projects have to obtain technical clearance from the Department of Electricity Development to get the licneces until formulation of electricity generation policy and criteria.
Currently, the Department under the Ministry of Energy at the central government is issuing the licences. But, the Ministry of Federal Affairs and Local Development recently wrote to the Department clarifying the local governments have been authorised to use the right.
The constitution has divided control over hydro projects among three levels of government. Recent Local Level Governance Act authorises local governments to control projects below one megawatt.