Countries with high hydropower potential also have high hydrogen potential as the water can be electrolyzed to form hydrogen using the electricity produced by hydropower. Hydrogen produced from renewable energy sources is called Green Hydrogen which seems to be a promising future in the field of clean energy. Other than just producing hydrogen using hydro-electricity, it can also be regarded as a way to store electricity as hydrogen can later be used to produce electricity again.

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Countries like Switzerland, Norway, Netherlands, and Norway are practicing this technique of producing hydrogen using hydro-electricity and in the same way, Nepal also holds significant potential, and for the same reason, Green Hydrogen Laboratory at Kathmandu University has been established.  This technique can be seen as one of the possibilities for increasing the efficiency of hydropower plants by conversion of water to hydrogen through electrolysis by using the excess energy or wasted energy not yet utilized, and then conversion of hydrogen to electricity via a gas turbine or fuel cells. The electricity produced in the off-peak or no-demand time, or at the time of huge river flows in the spring can be stored in the form of hydrogen, and later, when the peak energy is needed, the hydrogen converted to electricity.