This paper deals with policies to meet increasing demand for electricity in Turkey and elsewhere. Turkey has a gross annual hydropower potential of 433,000 GWh; that is equal to 1% of the total hydropower potential of the world and 14% of European hydropower potential. Only 122,322 GWh of the total hydroelectric potential of Turkey can be economically used. Environmental problems created by exploitation of domestic resources should not be ignored. We comment on adverse effects of large-scale hydroelectric projects in Canada, Egypt, and the USA. We argue in favor of small-scale dams for sustainable development.