The global debate about large dams is at once overwhelmingly complex and fundamentally simple. It is complex because the issues are not confined to the design, construction, and operation of dams themselves but embrace the range of social, environmental, and political choices on which the human aspiration to development and improved well-being depend. Over the last two decades, global electricity production has more than doubled, and electricity demand is rising rapidly around the world as economic development spreads to emerging economies. Not only has electricity demand increased significantly, it is the fastest growing end-use of energy. On the other hand, the hydropower industry is closely linked to both water management and renewable energy production, and so has a unique role to play in contributing to sustainable development in a world where billions of people lack access to safe drinking water and adequate energy supplies. Therefore, technical, economic, and environment benefits of hydroelectric power make it an important contributor to the future world energy mix, particularly in the developing countries. This article deals with policies to meet increasing energy and electricity demand by using hydropower for sustainable energy development in the world.