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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

  • Benefits of hydropower

    Do the benefits of sustainable hydropower outweigh the costs?

    A recent report from researchers at Oxford University questions the economic viability of large-scale hydropower development, highlighting cost and schedule overruns.

    Type:
    Blog post
    Date:
    13 March 2014
  • Renewing collaboration in China

    The China Institute of Water Resources and Hydropower Research (IWHR) and IHA extended their collaboration by renewing their co-operation agreement last week, 26 February.

    Type:
    News post
    Date:
    4 March 2014
  • Jean-Michel Devernay

    Interview: Jean-Michel Devernay, World Bank

    Jean-Michel Devernay is the World Bank's chief technical specialist for hydropower.

    Type:
    Blog post
    Date:
    28 February 2014
  • Renewable energy systems

    Promoting hydropower’s role in renewable energy systems

    Our annual activity report, Advancing Sustainable Hydropower, reviews our work in 2013 and outlines our vision for the future.

    Type:
    Blog post
    Date:
    18 February 2014
  • Gil Maranhão Neto

    Interview: Gil Maranhão Neto, GDF Suez

    Gil Maranhão Neto is the director of business development at GDF Suez Energy Brasil. He spoke with us about the hydropower environment in the Amazon region, the role of the private sector and the impacts of IHA's work.

    Type:
    Blog post
    Date:
    4 February 2014

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