The status and strategic plan of small hydropower development in the 27 Countries of European Union(EU), the composition of renewable energy resources and distributed power generation within EU, and the contributions of European Small Hydropower Association in promoting small hydropower development are introduced and analyzed in detail. According to the 12th 5-year-plan on national hydropower and new rural electrification issued by the Ministry of Water Resources of China, the small hydropower exploitation status and strategic planning are described and argued. A few outstanding issues in development of small and micro hydropower, such as confused rights and responsibilities, ma-nagement difficulties due to huge number of small hydropower plants, small hydropower development enterprises with poor continuity and unclear future trends, are identified. The problems that small hydropower equipment suppliers encountered, namely low technical level, insufficient technological backup, less funding invested and poor capability doing research and development, unsatisfactory ma-nagement skills and so on, are exposed. Additionally, the full-load hours are shorter per year in small hydropower plants. The problems related to run-off-the-river power plants are analyzed as well. Finally, there are five constructive suggestions proposed, i.e. clearing the rights and responsibilities of small hydropower enterprises to regulate its exploitation and operation, setting up a comprehensive management and development committee for small watersheds to manage many small hydropower plants as groups, tracking international developing trends of small hydropower to make our small hydropower industry bigger and stronger as well as sustainable, establishing "one integrated R&D center, two directions" to promote technology level of small hydro equipment suppliers, extending the full-load hours or equipment utilization efficiency to raise the power generation profits of small hydropower.
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