· There is a widespread but mistaken perception that SHP technology is mature and fully developed and that market forces alone will be sufficient to take it forward, so it does not need any significant level of institutional encouragement or support. For this reason SHP is usually excluded from (or given a minor share in) programs designed to assist other forms of renewable energy development. In reality, there is probably more potential - at least in the short term and on the global scale - for development and improvement of lower cost SHP than for any other form of clean energy development, yet it does need support.

· Economic analysis of hydropower projects generally gives no significant credit for the exceptionally long useful life and low running costs of SHP, and the high 'upfront' costs tend to make it seem financially unattractive compared with conventional energy unless low discount rates are available.

· There has been a tendency to develop SHP in exactly the same way as large hydro, which leads to high design overheads and sometimes to faulty optimisation of systems so as to maximise energy capture rather than to optimise cost-effectiveness.

· There are many other institutional barriers, mainly resulting from the difficulties inherent in gaining permission in most countries to abstract water from rivers, and also due to perceptions that hydro plant might adversely effect fishing, boating and other riverine leisure interests (although in practice well designed hydro systems can avoid causing any serious environmental impact for fish or anything else).

· Last but not least, much of the responsibility for the development of SHP lies with small and medium sized enterprises lacking the lobbying capability and influence that other industries such as PV or wind farm developers have on governments.