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
We are moving towards the public release of the G-res tool, a framework for reporting the likely greenhouse-gas (GHG) impact of freshwater reservoirs.Type:Blog postDate:18 April 2016
Hydropower projects can bring significant benefits to developing and emerging economies, providing essential services such as electricity generation, freshwater management and climate adaptation.Type:Blog postDate:18 April 2016
The shift in how hydropower is being developed is marked.Type:Blog postDate:15 April 2016
In May 2015, we hosted the World Hydropower Congress in Beijing, China. One of the key organising partners was the China Society for Hydropower Engineering.Type:Blog postDate:24 March 2016
33 GW of new hydropower capacity was commissioned in 2015, including 2.5 GW of pumped storage, according to estimates in our new briefing, 2016 Key Trends in HyType:Blog postDate:1 March 2016