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
In December 2015, the International Hydropower Association (IHA) carried out an annual issues survey for the first time. This new, annual initiative aims to take the pulse of the hydropower sector at large, monitor key issues faType:Blog postDate:1 March 2016
At the COP21 meetings in Paris, the French hydropower industry pledged to ensure that hydropower can play a leading role in the transition to a clean energy economy.Type:Blog postDate:29 February 2016
In December 2015, the International Hydropower Association (IHA) conducted a new annual survey. More than 200 people involved in hydropower gave their views on a range of issues for the sector.Type:Blog postDate:12 February 2016
Delay is a common problem in large construction works, and hydropower projects are no exception.Type:Blog postDate:10 February 2016
After two weeks of intense negotiations in Paris, 195 nations have agreed on a plan to hold the “increase in the global average temperature to well below 2° C above pre-industrial levels and to pursue efforts to limit the temperType:Blog postDate:21 January 2016