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 Tuesday 1 July we teamed up with our REN Alliance partners and the International Renewbable Energy Agency (IRENA) to host a webinar on renewables integration.Type:Blog postDate:30 June 2014
On Tuesday 1 July at 12.00 to 13.30 GMT, we are teaming up with our REN Alliance partners and the International Renewbable Energy Agency (IRENA) to host a webinar on renewables integration.Type:News postDate:26 June 2014
Elsbeth Tronstad is executive vice president of SN Power for corporate social responsibility, environment, communications and human resources. She speaks about the business case for sustainability in hydroelectric projects, and the importance for companies to get it right.Type:Blog postDate:5 May 2014
In February 2014, Canadian utility Manitoba Hydro announced a memorandum of understanding with US power co-operative Great River Energy to jointly investigate the sale of up to 600 MW of electricity from new hydropower projects.Type:Blog postDate:2 May 2014
Philipp Hauser is vice president carbon markets at GDF Suez Energy Latin America.Type:Blog postDate:4 April 2014