Markets and finance
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.
Green bonds
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 Markets and Finance Knowledge Network. The network focuses on building and sharing knowledge on key trends and developments in hydropower financing.
Hydropower Pro
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.
Contact us
For any questions, please contact IHA senior analyst Nick Troja at nicholas.troja@hydropower.org
Latest associated content
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Building a resilient, renewable power system with innovative hydropower technology
A major new energy innovation project to demonstrate how smart hydropower technologies can deliver a low-carbon, reliable and resilient power system was launched today.
Type:News postDate:10 December 2019 -
World Hydropower Congress concludes with clean energy and climate pledges
17 May 2019
Commitments underpin the renewable energy transition, manage climate risks and champion good practice
Type:News postDate:17 May 2019 -
IHA publishes activity and strategy report for 2018-2019
4 April 2019
The International Hydropower Association’s Activity and Strategy Report for 2018-2019 is now available online.
Type:News postDate:4 April 2019 -
Reward excellence in hydropower by casting a 2019 Mosonyi award nomination
15 February 2019
Nominations are now open for the International Hydropower Association’s prestigious Mosonyi Award for Excellence in Hydropower.
Type:News postDate:15 February 2019 -
Deadline extended for IHA Young Researcher Award
14 February 2019
Type:News postDate:14 February 2019