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
Even when countries have a wealth of untapped hydropower potential available, why can it still remain a challenge to entice financial investors to become involved?Type:Blog postDate:7 October 2013
Download the latest issue of Currents magazine
The October 2013 issue of Currents magazine brings together voices from across the hydropower sector.Type:News postDate:1 October 2013
Difficulties in recruiting a skilled workforce locally has led to the creation of an inspiring and empowering professional education programme.Type:Blog postDate:1 October 2013
Located some 96 km from Da Nang City, the commercial and educational centre of Central Vietnam, Song Bung 4 project is one piece of Vietnam’s energy puzzle, as the country faces an energy demand that grows at an average rate of 15 per cent per yeType:Blog postDate:25 September 2013
We are conducting research and analysis to investigate both barriers to hydropower development around the world, and policies that shape the general investment climate.Type:Blog postDate:25 September 2013