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
- Workshop slideshows: Innovation in hydropower financing
Latest associated content
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
We collaborated with HydroWorld to produce this short film, showcasing views on the sector from four different hydropower associations: the International Hydropower Association, National Hydropower Association, Canadian HydropowType:Blog postDate:6 January 2016
At the end of 2015 we can look back on a significant year for hydropower, from the gathering of the sector at the World Hydropower Congress in Beijing, to the crucial Paris Agreement at COP21. Here are just some of the highlightType:Blog postDate:15 December 2015
For the first time, we are taking the pulse of the hydropower sector at large in a new annual survey. You are invited to take part.Type:Blog postDate:30 November 2015
The fifth International Training Workshop on Planning, Construction and Operation Management of Small and Medium Hydropower Stations was recently held in Changsha, the capital of central China’s Hunan province.Type:News postDate:6 November 2015