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
On Thursday 4 September at World Water Week 2014 in Stockholm, we collaborated with the International Institute for Environment and Development (IIED) and the International Union for Conservation of Nature (IUCN) to convene a seType:Blog postDate:12 September 2014
A conglomerate operating in 23 countries through its 15 businesses, three investment funds and five supporting companies, Odebrecht Organisation employs nearly 200,000 people today and is one of the important actors in the hydroType:Blog postDate:27 August 2014
On 5–6 August, hydropower stakeholders congregated at the National Conference on Hydropower in India, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).Type:Blog postDate:26 August 2014
This short video introduces the role of hydropower in the world today and the future challenges for sustainable development.Type:Blog postDate:22 August 2014
Etalin Hydro Electric Power Company Limited, a Joint Venture company of Jindal Power Limited & Hydro Power Development Corporation of Arunachal Pradesh Limited, is inviting application for pre-qualification from interested bidders under InternType:News postDate:20 July 2014