Accounting for more than 16% of the world's net electricity production, hydropower is one of the most commonly used renewable sources of energy. Small-scale hydropower (SSH) systems are becoming increasingly successful options for hydropower generation, particularly in small localities and remote areas. Regardless of its low capacity, small-scale hydropower produces cheap, clean, and reliable electricity. The objective of this study is to provide a sustainable and economical solution for the increasing demand of electricity through small-scale hydropower generation in Pakistan. River flow and low head potential were investigated at twenty sites along the Upper Swat Canal and Swat River for hydropower generation. The sites were selected based on large differential head, velocity, ease of access, close proximity to dense population, and structural support. Hydropower capacity was calculated for each site based on the collected flow and hydraulic data. The cost per kWh of energy generated has been estimated by dividing the average annual recurring cost with annual generation over the lifetime of the project. Cost analysis indicated that purchasing one unit at 0.04 US$ is suitable for both the consumer and the government. Results revealed that each site is qualified to provide stable energy to more than 1500 houses based on the maximum consumption per home. The cost of the proposed power system was identified as the incentive factor in this study. In addition to the minimal variation in the seasonal production, the studied sites produced as much as 21% of the total Swat River production. The proposed spatial power distribution scenarios have contributed a potentially flexible alternative and cost-effective solution to the proposed SSH system. (C) 2016 Elsevier Ltd. All rights reserved.