This paper reflects on Pakistan’s current energy scenario and focuses on the Gilgit–Baltistan (GB) region where electrification remains a critical issue, particularly for the rural and remote communities. Aiming to evaluate the viability of hydropower as a sustainable energy source, the study involves an empirical investigation into the social, economic, and environmental impacts of two community-based micro-hydroelectric plants (CBMHPs) in Ahmadabad village, Hunza district. Employing an ethnographic methodology, data was collected through interviews with 21 households and 8 community members, supplemented by a focus group discussion. However, photographic data supported thematic analysis for data triangulation. Findings indicate that CBMHPs provide notable benefits, including continuous electricity, improved education, enhanced income opportunities, and a boost in tourism. These plants also lessen firewood usage, thereby cutting carbon emissions and aiding environmental conservation. The study advocates for the expansion of CBMHPs both in Pakistan and internationally to replicate these positive outcomes.