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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.

Green bonds

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.

Network resources

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

Contact us

For any questions, please contact IHA senior analyst Nick Troja at nicholas.troja@hydropower.org

Latest associated content

  • Morgan Landy

    Interview: the challenges of hydropower financing

    How is hydropower financing changing, and how is risk managed in the sector?

    Type:
    Blog post
    Date:
    11 May 2015
  • Hydropower investment

    Interview: how has the spectrum of hydropower investors changed?

    Lei Zhang is an energy specialist at the Asian Development Bank (ADB), with a portfolio that covers projects in Bangladesh, Nepal, India and Bhutan.

    Type:
    Blog post
    Date:
    2 May 2015
  • Shisanling project

    Discover Shisanling: powering Beijing

    The Shisanling pumped-storage hydropower station, set close to China’s iconic Ming tombs, combines history with modern technological achievement.

    Type:
    Blog post
    Date:
    24 March 2015
  • Myanmar map

    Myanmar: seeking hydropower’s optimum role

    Occupying the greatest land mass in south-east Asia, Myanmar is among the world’s biggest untapped territories for hydropower, with only 2.6 GW of its more than 100 GW potential having been developed.

    Type:
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    Date:
    12 January 2015
  • Ken Adams speaking at HydroVision International

    The year in pictures: 2014

    We have enjoyed a busy year in 2014 that has taken our team around the world, connecting members regionally and participating in many sector events. Here are just some of the highlights of our travels.

    Type:
    Blog post
    Date:
    18 December 2014

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