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.
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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.
IHA members can access the knowledge network in Hydropower Pro, our online member community.
In the online group, network members can connect with each other, exchange experiences and access essential resources, briefings and case studies.
Latest associated content
The Australian government has made hydropower a priority agenda item, to help deliver a more reliable and affordable energy system for all Australians.Type:Blog postDate:24 May 2018
Investment in new pumped hydropower storage capacity could greatly enhance the flexibility and resilience of the electricity network.Type:Blog postDate:24 May 2018
Hydropower based development in Ethiopia provides a gateway to economic transformation through industrialisation, urbanisation and through the provision of access to modern energy to rural areas.Type:Blog postDate:24 May 2018
With Sarawak being unique and blessed with an abundance of natural resources, it is only logical to explore and harness renewables from these resources.Type:Blog postDate:24 May 2018
Beijing, China, 24 May 2018Type:News postDate:24 May 2018