Finance and investment
Despite the strong demand for clean energy and an abundance of capital available worldwide, securing favourable financing arrangements for hydropower development is a challenging and complex task, which needs to be specifically tailored for each project.
The reasons for this are multidimensional as financing is contingent on a variety of factors, such as hydrology, and environmental and social considerations, which impacts a project’s risk-reward profile.
Preparation facility model
A significant barrier to private sector investment in hydropower is the financial risk associated with rigorous and complex planning and assessments, with no certainty for investors that a project will be given permission to proceed.
We are promoting a new hydropower project preparation facility model, which could help investors, developers and governments get new projects off the ground, by ensuring that each one is selected according to recognised sustainability criteria and national and regional development needs. Read more.
An innovative new investment instrument, green bonds are fixed income loans for the finance and refinance of projects and assets that help address environmental and climate risks.
We are working with partners to agree recognised eligibility criteria for green bonds to fund hydropower projects. Read more.
Join the network
Members interested in contributing to the development of the Hydropower Preparation Facility concept or learning more about green bonds should join IHA’s Finance and Investment Knowledge Network. The network focuses on building and sharing knowledge on key trends and developments in hydropower financing.
Members can gain access to resources, case studies and webinars including:
- Briefing note: Hydropower and the development of the green bond market
- Slides from the ‘Innovation in hydropower financing’ workshop held in February 2018
- Slides and statistics on the latest trends and developments in hydropower financing
Latest associated content
Hidroelectrica, the Romanian state-owned hydropower company, held an inauguration ceremony on 10 September following the completion of the country’s longest headrace tunnel built since 1984, representing an investment of mType:News postDate:29 September 2015
The 2015 Hydropower Status Report is now available for download, providing comprehensive insights into new global developments in the sector, statistics on new installed capacity, detailed regional analysis, and more.Type:News postDate:1 September 2015
Mike Muller is the commissioner of South Africa's National Planning Commission. Speaking in May 2015 at the World Hydropower Congress, he discusses the case for hydropower's inclusion in climate funding.Type:Blog postDate:20 August 2015
We are pleased to announce the results of the election of the IHA Board to serve for the period to October 2017.Type:News postDate:31 July 2015
The 2015 World Hydropower Congress took place on 19–21 May in Beijing, China, bringing together over 1,000 representatives of government, the finance sector, civil society, academia and industry to discuss a sustainable pathwayType:Blog postDate:12 June 2015