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This report is an output of the technical assistance activity carried out over 2008-2010 to Alternative Energy Promotion Center (AEPC), which is the nodal renewable energy agency of Nepal. This study has been designed to establish a monitoring system for AEPC to continually measure the results of the renewable energy programs against the targets and to organise an evaluation system that measures the impact of micro-hydro installations on rural livelihoods. This study developed a robust yet simple M&E framework for all the programs of AEPC that is focused on the needs of the decision-makers, as well as the interests of the relevant stakeholders. The integrated M&E system encompasses all of AEPC's programs in micro-hydro, solar, biomass, improved water mills, and biogas, and builds its capacity to execute it. The focus has been to develop performance indicators across the entire causal chain from project intervention to on-the-ground impacts. The M&E framework incorporates not only the activities undertaken and the outputs but also the impact on the beneficiaries which is critical to gain a better perspective of the impact of the interventions and to support future planning processes and decision-making. The final impacts of electrification on households and businesses are evaluated using a primary household and enterprise survey. A wide range of outcomes including quality of lighting, income generation, health, education, fertility, women's empowerment, and greenhouse gas emissions reduction are considered.