The inherent technical, economic, and environmental benefits of hydroelectric power make it an important contributor to the future world energy mix, particularly in the developing countries. Technically feasible hydropower estimated at nearly 15,000 TWh/yr still exists in the world today, mostly in countries where increased power supplies from clean and renewable sources are most urgently needed to progress social and economic development. This article deals with policies to meet increasing energy demand for electricity and domestic heating in Turkey. Air-pollutant emissions due to power generation and their harmful effects on the environment are also presented. We also argue in favor of small-scale dams for sustainable development. Turkey has a total gross hydropower potential of 433 GWh/yr, but only 125 GWh/yr of the total hydroelectric potential of Turkey can be economically used. By the commissioning of new hydropower plants, which are under construction, 36% of the economically usable potential of the country would be tapped. On the other hand, Turkey's total economically usable small hydropower potential is 3.75 GWh/yr.