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Hi Nischal. I'm a hydropower professional who has been pointed to your question. I hope I can help. I think the problem with your idea of using wells on top of hills to supply water to a hydropower scheme at the bottom of a hill is: 1) the fact that you will need to pump the water out of the well using significant energy before you can then generate energy using that water - with a likely net demand in energy. 2) the water table on top of a hill is likely to be at a much deeper depth than in the valley floor - requiring significant energy for pumping, 3) the yield from a well (even a very good well) will typically be very small compared to the flow of water needed for 1-3MW of hydropower. Assuming you have a gross head of 250m between the top of the hill and the bottom of the hill where your hydropower station would be situated, then you would need approximately 0.5 to 1.5 m3/s of flow - much greater than your likely well yield. My guess would be that the PV solar panel solution would be your best option to offset your diesel use, but I'm no solar power engineer - so explore this with the right person. Regards.Brian